Asia Tech Wire (May 22) -- Taiwan's Pegatron has adjusted its deployment of iPhone production in Shanghai by partnering with a Luxshare-affiliated entity, according to Chinese media outlet Jiemian.

A report on Wednesday said that GNDC (Shanghai) Co., Ltd., Pegatron's Shanghai subsidiary, had adjusted its deployment of iPhone production from February to April this year.

Pegatron has set up a new company at its current location in Shanghai to serve as the corporate entity for the strategic partnership to continue the iPhone manufacturing business, the report said.

The new company is wholly owned by Pegaglobe (Kunshan) Co., which plans to optimize its shareholding by July 1, 2024, increase its capital by about 2.1 billion yuan and introduce a strategic partner, Luxsan Precision iTech (Kunshan) Co Ltd, to fully carry out the joint venture cooperation in the iPhone manufacturing business.

Public information shows that the new partner is an affiliated entity of Luxshare Precision Industry Co Ltd (002475.SZ), a Chinese electronics company that makes iPhones and AirPods for Apple.

All personnel and equipment in the iPhone business, which was formerly under GNDC, were transferred to the new company, and the adjustment was completed between Feb. 28 and April 1, the report said.

At the end of December last year, Pegatron announced that it had ceded control of its Kunshan plant to the Luxshare-affiliated entity, retaining only a 37.5% stake.

Upon completion of the deal, Pegatron will have only three manufacturing facilities left in mainland China, located in Shanghai, Suzhou and Chongqing.

With the deal, Luxshare will also become the second-largest iPhone assembler after Foxconn, boosting its position in Apple's supply chain.