Who is Luxshare ICT? Luxshare’s activities in Vietnam

Luxshare ICT is a high-tech company specializing in the production of electronic components for major mobile phone brands such as Apple, Samsung, Lenovo, Sony, Asus, and Huawei. In Vietnam, Luxshare has built six factories in industrial parks in Bac Giang and Nghe An provinces, with a total investment of up to 600 million USD. The blog below will provide an overview of Luxshare and its activities in Vietnam.

I. Who is Luxshare ICT?

Who Is Luxshare? Luxshare’s Activities In Vietnam

1. Introduction

Luxshare ICT (Luxshare – ICT Precision) has its headquarters in Shenzhen, China. It was founded in 2004 by Grace Wang – one of the first employees working for Foxconn. Luxshare has many subsidiaries, which spread throughout many countries such as China, USA, Britain, Korea and Vietnam. The company mainly specializes in connectors, cables and antennas. 

Over 19 years, Luxshare has grown into a big company to serve numerous international clients, which include major brands such as Apple, Sony, Panasonic, Samsung, Huawei, Oppo, Vivo, Lenovo, Dell, Asus, Tesla…It is also the very first company located in China to assemble Iphone.

Luxshare ICT factories

2. Luxshare’s business activities

In 2007, Luxshare became the supplier of Lenovo and Asus thanks to its capabilities of manufacturing sophisticated products. At the same time, it succeeded in securing orders from Huawei and Emerson. In 2012, the company officially went public on Shenzhen stock exchange. 

Luxshare is also the first company to manufacture Airpods Pro for Apple. In 2013, Luxshare, for the first time, was listed in the top 200 suppliers for Apple as a connector supplier. According to the 2018 global ranking of connector manufacturers, Luxshare ICT ranked first in China and sixth in the world.

At the end of 2019, Apple launched two products, AirPods 2 and AirPods Pro, and requested Luxshare Precision to double the production of AirPods Pro to 2 million units per month due to higher than expected demand. Luxshare’s 2019 revenue increased fivefold to 62.09 billion CNY within five years thanks to having gained trust from Apple and other major technology names such as Microsoft, Google, Amazon, HP, and Dell.

In July 2020, Luxshare bought two smaller factories from Wistron in China. According the Luxshare’s data, revenue gained from Apple accounted for over 50% of the company’s total revenue.

II. Luxshare’s activities in Vietnam

Luxshare ICT Vietnam Co., Ltd. is a subsidiary of Luxshare Precision Industry Co Ltd and began operations in 2017. The company currently has six factories in Vietnam, of which four located in Bac Giang and two in Nghe An. The company’s products focus on three main areas: consumer electronics, information technology, and automotive. Until now, Luxshare ICT has invested approximately 600 million USD in Vietnam, employing around 40,000 people. This includes 270 million USD in Bac Giang province and 330 million USD in Nghe An province.

Specifically, Luxshare ICT opened its first factory in Quang Chau Industrial Park (Bac Giang) in 2016. Within just three years, in 2019, Luxshare ICT built additional factories in Van Trung Industrial Park (Bac Giang) and VSIP Industrial Park (Nghe An). 

From 2017 to 2019, Luxshare Vietnam’s revenue came solely from the Quang Chau factory. However, in the three years from 2019 to 2021, Luxshare’s revenue grew significantly. The total revenue of the Big3 (including Foxconn, Luxshare, and Goertek) in Vietnam reached 294 trillion VND (equivalent to 12.7 billion USD).

In the future, Luxshare ICT’s factories in Bac Giang and Nghe An industrial parks will meet Apple’s demand to shift 30% of its AirPods production lines to Vietnam.

1. Luxshare ICT Bac Giang

The Luxshare ICT Group has invested in an electronic component manufacturing project in Bac Giang with a capital of 100 million USD. The main products include computer cables and connectors, consumer electronic devices, automotive cables, and medical cables. The factories in Viet Yen, Bac Giang, have operated since July 2017, creating jobs for over 53,000 workers (as from 2022) with revenue exceeding 33 trillion VND.

• Luxshare factory in Quang Chau Industrial Park

The Luxshare Quang Chau factory spans 29.1 hectares and specializes in products such as computer cables and connectors, internet devices, smartwatches, styluses, lighting equipment, and other devices.

Factories in Quang Chau I

• Luxshare factory in Van Trung Industrial Park

Luxshare Van Trung received an investment registration certificate (IRC) for a 180 million USD project in September 2019. The registered investment capital was later adjusted to 190 million USD. The 36.1-hectare project has an annual production capacity of 20 million components for Bluetooth headsets, smartphones, and electronic devices; one million smartwatches; and 35 million Bluetooth speakers. The company plans to export all its products.

Luxshare’s factories in Van Trung

2. Luxshare ICT Nghe An

The “Electronic Devices and Components Manufacturing” project, also known as Luxshare ICT (Nghe An) 2, is located in VSIP Industrial Park Nghe An (Hung Tay commune, Hung Nguyen district, Nghe An province) with an area of 36.18 hectares. The total investment capital for the project is 150 million USD, equivalent to 3.4 trillion VND. The Luxshare ICT electronic component manufacturing project has a designed capacity of 74 million products per year, equivalent to 3.44 trillion VND. Construction began in January 2023, and production was expected to commence in March 2024. Once put into operation, the project will contribute to the state budget and create jobs for over 14,000 workers.

Luxshare’s factories in Nghe An

Luxshare is not only a leading company in the electronic component industry but also a prime example of successful development and expansion in Vietnam. With continuous growth and a commitment to quality, Luxshare will undoubtedly remain one of the top suppliers for Apple and other technology companies worldwide.

Source: Redsunland.vn