Realigning of supply chain outside of China is important for companies looking to escape the U.S.-China trade war.
In a significant development Foxconn, the world’s largest contract electronics assembler, disclosed it has enough producing capacity outside of China to meet Apple’s demand in the American market.
The comments come in the wake of U.S. President Donald Trump threatening to slap tariffs on the remaining $300 billion worth of goods from China.
“Twenty-five percent of our production capacity is outside of China and we have enough capacity to meet Apple’s demand in the U.S. market,” said Liu Young-way, a member of Foxconn’s board. He went on to add, if Apple so requires, Foxconn can adjust its production lines accordingly.
Liu made these comments at Foxconn’s first investor conference in Taipei. He stated the U.S.-China trae war “will have some impact, but it will be limited”.
He also highlighted that Foxconn’s investment in Wisconsin was more important than before given the escalating U.S.-China trade war.
Foxconn is already under the spotlight for having failed so far to meet job-creation targets in Wisconsin.
According to Liu, the Wisconsin investment, which is expected to reach $1.4-1.5 billion, will provide employment up to 2,000 employees by end of 2020; it is on schedule. The project, which includes manufacturing of displays and servers, is likely to go into production by end of 2020.