Apples Chinese contractors have mastered advanced chip packaging technology

Apple’s Chinese contractors have mastered advanced chip packaging technology

The influence of Apple’s Chinese contractors is growing, and in their ambitions they are beginning to quarrel with Foxconn. For example, Luxshare recently announced its aspirations to become an influential contract electric vehicle manufacturer. The company is also expanding its expertise in packaging multichip semiconductor components, and another Chinese Apple contractor, Goertek, is following suit.

Image source: Luxshare

Image source: Luxshare

A Japanese source reports on the successes of Luxshare and Goertek Nikkei Asian Review, who learned about the companies’ plans to engage in the packaging of complex semiconductor solutions. Initially, this will be necessary to create profile components for Apple products, since the same Luxshare specializes in the production of AirPods wireless headphones. According to experts, the presence of such competencies in Chinese companies will help strengthen China’s national semiconductor industry in the future. Luxshare will locate its chip packaging line in Vietnam, where the AirPods will be assembled next door.

According to the source, Luxshare is trying to poach specialists from USI, a company associated with the biggest player in the chip packaging services market, Taiwan’s ASE Tech Holding. While the quality of the core products received from Luxshare and Goertek is inferior to the products of the same ASE Tech, Amkor or USI, they remain Apple’s partners due to their ability to integrate production processes. It is assumed that cooperation with the Cupertino-based company will only continue to expand.

While Luxshare has successfully won Apple orders for iPhones and watches, not to mention AirPods, Goertek is the largest maker of Metas (Oculus VR) virtual reality headsets and, more recently, the second largest contract maker of Sony’s PlayStation 5 video game consoles. Incidentally, for the first time in the company’s history, the shortage of components in the past year forced Luxshare into a drop in profits, even though the business had previously developed very dynamically. The company recently announced its willingness to commit $150 million to expand product lines related to multi-chip component packaging.

Goertek intends to list its chip division on the Shenzhen Stock Exchange. The ambitions of Chinese players in this field are also evidenced by the purchase of Nexperia by smartphone assembler Wingtech in Newport, UK, which took place in 2019. Similar technologies are needed by Chinese developers in opening up the market for electric vehicle components.


About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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