Chinese Companies Are Taking Market Share in Tech Sector from Taiwan

Chinese electronics manufacturing companies could take away the market share from Taiwan manufacturers like Foxconn and Pegatron, according to an investment fund manager Kirkland Capital.

“Chinese companies are getting pretty competitive for iPhone assemblers. China is doing quite well in pretty much everything, except semiconductors,” Kirk Yang, chairman and CEO of Kirkland Capital, told CNBC.


The statement came after Foxconn published its unaudited revenue in 2022 that saw an increase by 10.47% in revenue. However, November and December revenue fell by 11.36% and 12.30%, respectively. The company said that its iPhone plant in Zhengzhou has returned to normal operation after suffering a mass walk out from its employees.

Luxshare, a Chinese company, gets to compete with Foxconn who are the biggest supplier of iPhone. Luxshare produced a small quantity of iPhone14 Pro Max, while Foxconn’s plant had to deal with COVID restrictions and problems with its employees late last year. Luxshare also produces connector cables for iPhone and MacBook, and produces Airpods.

According to the Financial Times, Luxshare has been awarded a contract to produce premium iPhone models in China.


Yang said that in the last five years,Taiwanese companies faced high pressure and had to leave China, and also Apple wanted to diversify due to the U.S. and China technology war that stimulated many companies to move out of China.

Kirk Yang thought Chinese companies have more advantages like tax incentives and when they know how to produce and make the same quality at a cheaper price, this will make China able to take market share from Taiwan.