TAIPEI/SHANGHAI: Apple component supplier Luxshare will become the first mainland China headquartered assembler of Apple iPhones, according to Reuters.

Until now that turf has been dominated by Taiwan-based Foxconn, which assembles iPhones in Chinese factories.

Luxshare acquired two smaller factories belonging to Taiwanese iPhone assembler Wistron in China in July. Previously, it was best known for making Apple’s AirPods.

Reuters said one of its sources had called Luxshare a “formidable opponent” and said Foxconn has been conducting extensive research on Luxshare, aiming to “defeat it completely.”

Foxconn has apparently set up a task force to fend off the growing clout of Luxshare, looking into the company’s technology, expansion plan, hiring strategy and whether it is supported by any Chinese government entity.