Foxconn says it could manufacture all U.S

Darnell Taylor
June 13, 2019

The news should be particularly encouraging given the alternative scenario which would likely see Apple having to bear the brunt of a more costly iPhone. The Taiwanese contract manufacturer now makes most of the smartphones in the Chinese mainland.

The trade war between the United States and China could bring more pain to Apple with the USA president threatening Beijing with imposing new tariffs on about $300 billion worth of Chinese goods, including Foxconn-built iPhones and iPads. Analysts have also predicted that Apple leaves itself open as a valuable target.

Hon Hai, known also as Foxconn, is the American giant's most important manufacturing partner. Hon Hai said that more than 25% of its production comes from China, and now they want to help Apple by shifting their production plants in U.S. or elsewhere.

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

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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. Foxconn assures that it can fully support Apple if the ongoing trade war goes unpredictable.

The wage increase applied only to the company's employees in Taiwan, totaling 6,000 according to local media, and was carried out based on employee performance, Foxconn said.

Possible locations for the shift in Apple product manufacturing include India and the United States. Foxconn already has facilities in India, and it was reported in 2017 that the company would be investing as much as $356 million to expand its high-end iPhone assembly to the country. But that project has since come under criticism for low-paying jobs, sudden dismissals and ever-changing goals.

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