Taiwan’s electronics giants may cut and run from China

Foxconn and Quanta are among four major companies reportedly planning their exits due to the ongoing US-China trade war

Foxconn founder Terry Gou

Foxconn founder Terry Gou (AP photo)

TAIPEI (Taiwan News) – Four Taiwan business giants, including Foxconn Technology Group, Quanta Computer, Inventec and Compal, will withdraw from the Chinese market due to the ongoing U.S.-China trade war, according to Bloomberg.

The trade war has made it difficult for companies to operate in China. According to the Bloomberg report, the four Taiwan-based companies are reconsidering their business strategies because the trade war has hit their bottom lines.

The four companies are responsible for 40 percent of electronics exports from China to the U.S. Once these companies decide to relocate their factories, China could lose its place as the global manufacturing king.

Foxconn has factories in more than 30 Chinese cities but started the mass production of iPhones in India earlier this year, reported Economic Times. Meanwhile, its Wisconsin headquarters is currently under construction.

Both Quanta Computer and Compal have decided to move their production lines back to Taiwan and other countries in Asia. At the same time, Inventec plans on moving its factories to Malaysia and Vietnam, according to Liberty Times.