DigiTimes: Apple Watch Series 6 supply chain gets new partnership with Luxshare and ASE Tech.

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DigiTimes reports that Apple is ‘keen” on building collaboration between Luxshare and Taiwan-based ASE Technology to build a new Chinese supply chain led by EMS, Luxshare’s provider.

The report quotes sources stating that for the Apple Watch Series 6, its SiP or System Integrity Protection chip and optical heart rate sensors will be sent to Luxshare for final assembly, after being processed by ASE and Siliconware Precision Industries.

For its backend service for the upcoming Apple Watch 6, ASE Technology will send high-end SiP modules of sensors and optical heart rate monitoring components for the device to Luxshare for final assembly after they are processed by ASE and Siliconware Precision Industries (SPIL), although its EMS arm Universal Scientific Industrial (USI) can also do the job, the sources said.

It seems that USI is losing part of EMS orders for the new Apple Watch to Luxshare, but it would not affect its profitability much, given that large EMS firms such as Foxconn Technology and Quanta Computer have usually seen little profit from assembling Apple Watch and other consumer electronics devices, the sources said.

In February of this year, in an investors note seen at the time by MacRumors, Apple analysts Ming-Chi Kuo confirmed Luxshare’s plan to enter the Apple Watch supply chain. As Luxshare enters, USI or Universal Scientific Industrial is losing some orders for the new Watch to Luxshare, but should not impact profits.

It seems that USI is losing part of EMS orders for the new Apple Watch to Luxshare, but it would not affect its profitability much, given that large EMS firms such as Foxconn Technology and Quanta Computer have usually seen little profit from assembling Apple Watch and other consumer electronics devices, the sources said.

Luxshare is not new to the Apple supply chain but is an increasingly prominent threat to Foxconn. Apple is reportedly pushing Luxshare to build up its infrastructure to take on Foxconn as a main supplier for the iPhone.

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Sami
Sami started falling in love with Apple in 2010 with the iPhone 4S. As a registered developer, he deeply admires the world of Apple. Sami is an aspiring journalist, writer, and actor. He also has devoted his life to sharing his passion and knowledge with others around the world.