Chinese Apple supplier Luxshare announced it would be taking over an iPhone assembly plant in China from the Taiwanese company Pegatron.

According to the Financial Times, the world’s second-largest iPhone manufacturer will pay $300 million to Pegatron to acquire a 62.5% stake in the company's Shanghai facility, based on a filing Taipei Exchange filing.

“There’s limited impact on the company’s overall operation since the current business model has no change due to the capital injection,” Pegatron said.

Luxshare’s stock rose by 4% in Asia on the morning of December 29 following the announcement, while Pegatron's shares fell by 4%.

This deal comes at a time when Luxshare has expanded its capacity, putting more pressure on Apple’s biggest global supplier, Foxconn.

“Luxshare’s pricing is more aggressive. They manage their cost control better, making their quotes to Apple more competitive,” said Qi Yingnan, an analyst for the global technology market research firm Counterpoint Research.

Before this deal was made, Luxshare secured an agreement with the U.S. chip manufacturer Qorvo to buy assembly and testing facilities owned by the group in Dezhou and Beijing. Citi analysts said the Qorvo acquisition will “increase Luxshare’s capabilities and talent pool,” while opening the company’s door to more U.S. customers.