Foxconn suggests it could manufacture all US iPhones outside of China

Apple can reportedly survive a China ban as Foxconn shifts to India

Apple contracts with Foxconn for manufacturing of their iPhone lineup. With ongoing US Trade War with China, the Cupertino tech giant seems to have a contingency plan if the things go unfavorable as a result of the trade war.

Foxconn still sustained stable revenue growth in the first five months of 2019 despite the volatile market environments, Liu said, adding that his company and clients are studying the possible impacts on their third-quarter revenue performances from the 25% tariffs imposed by the USA on US$200 billion worth of Chinese imports starting May 10. In fact, Foxconn says that 25% of its manufacturing capacity is outside of China already.

According to a senior executive at Hon Hai Precision Industry Co Ltd. President Donald Trump's threat of tariffs on Chinese imports could, for example, essentially inflict a tax on Apple's iPhones.

Mr. Liu heads the firm's semiconductor division. As the US-China trade war is getting more grim and unpredictable, Hon Hai will fully support Apple if it needs to adjust its production, he said.

However, Apple hasn't requested such a transfer of production capacity from China to other markets, he said, albeit Hon Hai is ready to "respond swiftly" if needed. However, he noted, Apple has yet to ask Foxconn to move production out of China.


Apple can move iPhone manufacturing out of China if the Trump administration's trade war with Beijing escalates, its biggest manufacturer has said.

It's unclear whether India will ever become a major production base for Apple's marquee device.

Finally, Foxconn has also agreed to build a facility in Wisconsin which will employ 13,000 workers in exchange for more than United States dollars 4.5 billion in government incentives. On Tuesday, executives said the facility will employ up to 2,000 laborers by the end of 2020.

The company's willingness to quickly respond to Apple's needs makes sense.

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