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Business· Manufacturing

Foxconn has the capacity to move iPhone production out of China if needed

CKN
minutes 2019/06/12 04:32:47
2,504
foxconn technology group; manufacturing

Jun 12, 2019 (China Knowledge) - Foxconn Technology Group, the world’s largest electronics contract manufacturer and Apple’s most important manufacturing partner has stated that it has the capacity to make all US-bound iPhones outside China if necessary.

The statement from Foxconn comes as the US threatens China with USD 300 billion worth of new tariffs which will virtually cover all Chinese exports to the US, escalating trade tensions and effectively placing a tax on Apple’s iPhones which are now manufactured in China.

While Apple has not asked Foxconn to move productions out of China, the later already has 25% of its production capacity located outside of China and is also making investments into India for the American company.

Foxconn is currently running quality tests for the iPhone XR series in India and has plans to commence mass production at a facility located in the suburbs or Chennai. Older iPhone models are already being assembled at a plant in Bangalore.

Finally, Foxconn has also agreed to build a facility in Wisconsin which will employ 13,000 workers in exchange for more than USD 4.5 billion in government incentives.

The company has also reaffirmed its employment goal, and construction schedule after receiving criticism for low-paying jobs and sudden dismissal.

 

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