TAIPEI (Taiwan News) -- Hon Hai Precision Industry Co., more commonly referred to as Foxconn, said on Tuesday (June 11) that it's capable of moving iPhone production completely outside of China should the US-China trade war spin out of control, Liberty Times reported on Wednesday (June 12).
Foxconn is Apple’s biggest iPhone assembly partner.
The company’s statement came after the trade war between the U.S. and China showed signs of deepening, and media reports that Apple could pull iPhone production out of china if the trade war continues to escalate.
US President Donald Trump recently threatened to move forward with a plan to impose tariffs on about US$300 billion worth of additional goods from China after having increased the tariff rate on more than US$200 billion worth of Chinese goods from 10% to 25% last month.
If Trump’s threat becomes a reality, Apple will be greatly impacted, Liberty Times said.
So far Apple has not indicated that it will move the production line outside of China, said Liu Young (劉揚偉), head of semiconductor division at Hong Hai, according to the news outlet. He added, however, Foxconn has the capability and is prepared to meet Apple’s relocation demand if necessary.
Liu said Foxconn has production facilities in 16 countries globally, and 25 percent of the company's production capacity is outside of China.