In response to a media report that it has set up a working group to deal with competition from Chinese mainland electronics maker Luxshare Precision, Foxconn has dismissed it as false information.
According to an earlier report by Reuters, Hon Hai Group, the parent company of Apple's largest iPhone OEM Foxconn, has set up a working group to counter the growing influence of Luxshare Precision, which is seen as a serious threat to Foxconn's dominance, according to multiple sources with knowledge of the matter.
In response, Foxconn told the Securities Times that "this is false news". The response provided no further details.
The Reuters report cited one of the sources as saying that the project was personally initiated by Hon Hai Group founder Terry Gou.
The working group was formed last year and has been working on Luxshare Precision's technology, expansion plans, and hiring strategy, despite the company's 62.5 billion yuan in revenue last year is only about 5 percent of Foxconn's.
"Luxshare is set to rise ... it's just a matter of how fast it could be," one of the sources said.
"It makes sense for China to build up its own supply chain and Luxshare is in line with that state policy."
Luxshare, whose chairwoman was once a worker at Apple supplier Foxlink, acquired two smaller factories belonging to iPhone assembler Wistron in China in July. Previously, Luxshare was best known for making Apple's AirPods.
One of the sources called it a "formidable opponent", and said Foxconn has been conducting extensive research on Luxshare, aiming to "defeat it completely."
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