(Yicai Global) Nov. 18 -- Chinese Apple supplier Luxshare Precision Industry has denied any knowledge of the purchase of part of Taiwanese contract manufacturer Pegatron’s iPhone factory in Shanghai, after an online report said it has snapped up a number of buildings.

The securities department has not been informed of such an acquisition, said Luxshare, which is one of US tech giant Apple’s three main assemblers, churning out smartphones, watches and headphones as well as components such as display modules and systems-in-packages.

All major developments will be announced by the company, Shanghai Securities News reported.

Luxshare has bought several of Pegatron Shanghai’s buildings as some production lines were lying idle after Apple cut orders, the Shanghai Star Market reported on its website on Nov. 16, citing former company employees.Many workers, especially those on an hourly rate, left the Shanghai facility as there were not enough orders for them to make a living, other staff members said.

Pegatron has complete iPhone assembly lines because California-based Apple has a very strict inspection process for its suppliers. Therefore, such an acquisition would “save the buyer a lot of time,” the employees said.

It would not be the first time that Luxshare, which has been expanding aggressively since it entered Apple’s industrial chain in 2011, has snapped up Pegatron’s assets. Last year, it spent CNY6.6 billion (USD930 million) buying four subsidiaries of the Taipei-based firm.

Luxshare’s biggest client accounted for 74.1 percent of the Dongguan, southern Guangdong-based company’s accounts receivable last year, up from 55.4 percent in 2019. It is widely believed that this customer is Apple.

Editor: Kim Taylor