- Apple bought a semiconductor design company and brought that in-house.
- Apple does all software design, hardware design, industrial engineering, etc in house.
- Apple develops its own processes for manufacturing their computers (unibody).
- Apple built a chain of retail stores to sell directly to consumers.
Those are just a couple examples; the trend is very clear to me.
As far as I've been able to tell, design and engineering get hauled in because they want to control it. I guess you can add the stores, too.
But buying something like an LCD panel maker? Or a flash maker? Or Foxconn? I'd be shocked.
If I am not mistaken, there were reports that Apple provided at least some of the capital for both Samsung's upcoming fab in Texas and the newly opened Foxconn factory in Brazil. I guess they have decided it doesn't (yet?) make sense to own manufacturing facilities outright, but they seem to be making actual investments in their manufacturing partners rather than just purchasing services. I would say that is indeed further evidence of a tendency toward vertical integration.
[1]http://en.wikipedia.org/wiki/List_of_mergers_and_acquisition...
Foxconn is actually a Taiwanese company.
(Technically that can still mean China depending on your definition. I interpreted your comment to mean that the (mainland) Chinese government would block a potential takeover. That isn't directly possible, although clearly they have multiple ways to put indirect pressure on Foxconn. (Not that this will happen anyway, because Apple isn't going to buy Foxconn))