Apple Inc. (AAPL  ) supplier Luxshare Precision Industry has announced its intention to raise HK$ $24.27 billion ($3.1 billion) through a share sale in Hong Kong, according to a stock exchange filing on Tuesday. The Shenzhen-listed electronics manufacturer plans to issue 383.5 million H shares at a maximum offer price of HK$63.28 ($7.94) a piece. According to its prospectus, 90% of the shares will be allocated to international investors, with the remaining 10% offered to Hong Kong retail investors.

Shares are slated to begin trading on July 9. Luxshare is expected to finalize the offer price on July 7, followed by the release of pricing and allocation results on July 8.

Luxshare is pursuing a listing as it expands beyond consumer electronics, which accounted for nearly 80% of its revenue last year. Its automotive electronics business has grown rapidly, increasing its share of revenue from 3.9% two years ago to 11.8% in 2025, reported CNBC.

Apple's Supply Chain Shift

This move by Luxshare comes amid a significant shift in Apple's global supply chain over the past year. The iPhone maker's long-standing relationship with Taiwanese contract manufacturer Foxconn Technology Group, also known as Hon Hai Precision Industry Co., Ltd. (HNHAF  ) (HNHPF  ) has been undergoing a transition, with the tech giant increasingly leaning towards Chinese manufacturers like Luxshare.

Analyst Patrick McGee previously said Apple's growing reliance on Chinese manufacturers like Luxshare reflects the rise of the "red supply chain," marking a strategic shift that has increased the company's dependence on China and created a geopolitical vulnerability as tensions between the U.S. and China escalate.

Notably, like Luxshare, Foxconn, which is also an Nvidia Corp.(NVDA  ) supplier, has also evolved beyond assembling consumer electronics into a key player in AI servers, while expanding into emerging sectors such as electric vehicles, humanoid robots, semiconductors, and healthcare robotics. The company is also increasing AI server production in the U.S. to reduce geopolitical and tariff-related risks.

Meanwhile, Apple has been grappling with surging component costs. The company has been testing its pricing power by raising prices across several Macs and iPads. The company has raised eyebrows for offsetting rising costs after increasing prices on several Macs and iPads, including the MacBook Neo and MacBook Air 512GB.