Home Appliance Disruptors Shift from Contract Manufacturing to In-House Production

Industry
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Summary · why it matters

A number of home appliance disruptor brands are bringing core component production back in-house from external contract manufacturing, aiming to strengthen supply chain security and boost profit margins. Laifen, known for its hair dryers, has built injection molding, motor, and battery production lines at its Zhuhai super factory, achieving a component self-sufficiency rate of over 90 percent. Xiaomi put its Wuhan smart appliance factory into operation in October 2025, with a total investment exceeding 2.5 billion yuan, a peak annual capacity of 7 million units, and an air conditioner rolling off the line as fast as every 6.5 seconds. Ecovacs has formed three major supply chain segments: Tiding Battery, Tongfan Mold, and Kaihang Motor. Among them, Tiding New Energy has a total investment of about 1.2 billion yuan, plans an annual production capacity of 2 gigawatt-hours of lithium batteries, and has already achieved procurement cost optimization of over 20 percent. Midea Group's business-to-business revenue reached 122.8 billion yuan in 2025, up 17.5 percent year on year, and its Meizhi household air conditioner compressors rank first globally in sales volume and are also sold externally. Gree Electric's silicon carbide chip cumulative sales have surpassed 300 million units, with installations and shipments exceeding 2 million air conditioners, and it also provides external foundry tape-out services. An analyst from LeadLeo Research Institute pointed out that building an in-house supply chain requires balancing product differentiation, cost, and capital returns, and blindly pursuing self-sufficiency may drive up unit costs.

Impact on stocks 5

Electrification & Mobility▲ · 1 stocks
Xiaomi Corp
1810
▲ PositiveSupplyrelevance

Xiaomi's Wuhan smart appliance factory with 2.5B yuan investment and 7M unit capacity strengthens in-house supply chain.

Others▲ · 4 stocks
Ecovacs Robotics Co Ltd
603486
▲ PositiveSupplyrelevance

Ecovacs formed three supply chain segments including Tiding Battery with 1.2B yuan investment, achieving over 20% cost optimization.

Midea Group Co Ltd
000333
▲ PositiveDemandrelevance

Midea's B2B revenue reached 122.8B yuan in 2025, up 17.5% YoY, and its compressors rank first globally.

Off-coverage companies 1

徕芬Private▲ Positive
Supplyrelevance

Laifen achieved over 90% component self-sufficiency rate at its Zhuhai super factory.

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