As many of you may know, United States and the China are not exactly on good terms commercially. Although the tariff war between the two countries has affected several companies, Apple has certainly received the most attention since the beginning of the malaise between the two countries.
However, the situation of the Cupertino giant is even more delicate when we analyze its production. It is no secret that most Apple hardware is made in China, some of which (such as chargers and cases) have already been priced by the White House in the USA. However, it could be hit even more if these rates fell on iPhones, its gadget flagship.
In an attempt to circumvent this possibility, Apple and some of its suppliers, such as Foxconn and Wistron, are expanding their production (mainly iPhones) to other countries, especially India. Pegatron, another Apple partner factory, is also expected to relocate part of its MacBook production to Indonesia.
But will these efforts be sufficient to meet production demand outside of China? According to the head of the semiconductor division at Foxconn, Young Liu, Yes. The executive commented on Apple’s production at a meeting with investors in Taipei (Taiwan) today, as disclosed by Bloomberg.
According to Liu, Foxconn will fully support the Cupertino giant if it needs to adjust its production, as the “trade dispute between the United States and China is becoming more unpredictable”. In this sense, the executive stated that he would be able to supply the production demand for the American market with Foxconn factories outside Chinese territory.
25% of our production capacity is outside of China and we can help Apple respond to your needs in the US market. We have enough capacity to meet Apple’s demand.
For now, Apple has not ordered Foxconn to transfer most of its device production outside of China, as it may also move it to other places (such as India, Indonesia and Vietnam) according to its needs. .
Therefore, it is even possible that part of the production is carried out in the USA; after all, last January, we commented on the possibility that Foxconn could finally build its promised plant in the US state of Wisconsin. The biggest problem here, obviously, would be the local costs involved.