Taiwan’s Foxconn executive, who is making an Apple iPhone, said he could move all Apple products out of China if needed.
The US Trump regime announced that it would raise tariffs from 10% to 25% against the US $ 300bn in May, including Chinese smartphones, and Apple products will be affected from end-June. According to Bloomberg Communications, Liu Young-way, head of semiconductor division at Foxconn, told investors that 25 percent of Foxcon’s production capacity could be outside of China to meet Apple’s US market demand. Of course, there is no word yet to move production from China to outside of China, he added.
He predicted two years ago that he needed to build a production base in Wisconsin, USA. Foxconn was able to respond quickly to the trade war. The Wisconsin facility has issued a statement saying that it plans to build Foxcon in February of this year, but it does not have realistic production capacity yet.
Foxcon was also rumored to be preparing for the iPhone’s high-end models in India later this year. In April of this year, the local company announced that it would begin mass production of the iPhone this year. Pegatron, one of the Apple product builders, also reportedly started producing MacBooks and iPads this month in Indonesia.
According to reports, Apple will continue to maintain production in China until the US government raises its tariff on China to 25%, but if it goes above that, it will consider changing production bases. Apple-related suppliers seem to be pushing to secure production bases outside of China in the wake of the US-China trade war. For more information, please click here .