Major Apple assembler Foxconn ramps up investment outside China

Foxconn, which assembles around 70% of Apple’s iPhones, has been diversifying production away from CCP-controlled China, whose quixotic “Zero-COVID” lockdowns and restrictions disrupted its “iPhone City” plant last year. The company also seeks to avoid a potential hit to its business from mounting trade tensions between Beijing and Washington.

Major Apple assembler Foxconn ramps up investment outside China
iPhone News
15-03-2023 13:58

“It is customer demand that guides our considerations on how to deploy our production capacity in the ICT field,” Foxconn Chairman Liu Young-way said on an earnings call, referring to information and communications technology.

He said expansion was needed in countries such as the U.S., Vietnam, India, Mexico and China, “in response to customer and supply chain adjustments”.

Liu said currently about 70% of the company’s revenue is derived from products made in China, but “going forward the proportion of overseas region will continue to increase.”

Foxconn grabbed headlines in November when curbs to control COVID-19 prompted thousands of workers to leave its massive factory in China’s Zhengzhou city, disrupting production ahead of Christmas and January’s Lunar New Year holidays… The company said previously that production has returned to normal in Zhengzhou, which produces the majority of Apple’s premium models, including the iPhone 14 Pro.

COMMENTS

Uploading...