According to foreign media citing sources, the Hon Hai Group, the parent company of Apple’s largest iPhone foundry maker Foxconn, has set up a special task force to deal with the challenges posed by mainland Chinese electronics manufacturer Luxshare Precision. But Foxconn officials denied this.

According to one of the sources, this project was initiated by Foxconn founder Guo Taiming.  It is reported that the working group was established last year and has been studying Luxshare’s precision technology, expansion plans, and recruitment strategies. Sources said that Foxconn established this working group to counter the growing influence of rival Luxshare Precision, which is considered a serious threat to Foxconn’s dominant position.

In the Sino-US trade dispute and the new crown epidemic crisis, the pressure on the global supply chain is bound to increase, which will naturally drive the accelerated development of domestic technology companies, and Luxshare Precision is in line with this trend.

“Luxshare Precision will definitely rise… it’s just a matter of how fast,” a source said, “This is related to China’s establishment of its own supply chain, and Luxshare Precision fits this policy background.”

“Faced with the rise of the ‘mainland supply chain,’ the threat of replacement of Taiwanese manufacturers has gradually increased.” Taiwan think tank “Market Intelligence and Consulting Research Institute” wrote in a report in September.

Foxconn issued a statement on this, stating that the foreign media’s report was “not based on facts” and “there was no meeting or other contact,” and “the management team did not take other special actions.”

Luxshare Precision and Apple did not respond.