Winehole23
08-14-2020, 10:11 AM
A key supplier to Apple and a dozen other tech giants plans to split its supply chain between the Chinese market and the US, declaring that China's time as factory to the world is finished because of the trade war.
Hon Hai Precision Industry Co chairman Liu Young-way said it's gradually adding more capacity outside of China, the main base of production for gadgets from iPhones to Dell desktops and Nintendo Switches. The proportion outside the country is now at 30 per cent, up from 25 per cent last June.
That ratio will rise as the company - known also as Foxconn - moves more manufacturing to South-east Asia and other regions to avoid escalating tariffs on Chinese-made goods headed to US markets, Mr Liu told reporters after his company reported financial results.
"No matter if it's India, South-east Asia or the Americas, there will be a manufacturing ecosystem in each," Mr Liu told investors on a conference call, adding that while China will still play a key role in Foxconn's manufacturing empire, the country's "days as the world's factory are done."
https://www.straitstimes.com/business/companies-markets/chinas-days-as-worlds-factory-are-over-due-to-trade-war-iphone-maker
Hon Hai Precision Industry Co chairman Liu Young-way said it's gradually adding more capacity outside of China, the main base of production for gadgets from iPhones to Dell desktops and Nintendo Switches. The proportion outside the country is now at 30 per cent, up from 25 per cent last June.
That ratio will rise as the company - known also as Foxconn - moves more manufacturing to South-east Asia and other regions to avoid escalating tariffs on Chinese-made goods headed to US markets, Mr Liu told reporters after his company reported financial results.
"No matter if it's India, South-east Asia or the Americas, there will be a manufacturing ecosystem in each," Mr Liu told investors on a conference call, adding that while China will still play a key role in Foxconn's manufacturing empire, the country's "days as the world's factory are done."
https://www.straitstimes.com/business/companies-markets/chinas-days-as-worlds-factory-are-over-due-to-trade-war-iphone-maker