Foxconn has enough capacity outside China to meet Apple's US demand

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Foxconn Technology Group said it is ready to shift production for Apple out of China in order to avoid United States tariffs on products from China.

In his comments to investors, Liu said Apple had not given Hon Hai instructions to move production out of China.

He said the Wisconsin investment was more important than before, given the trade war.

A senior Foxconn executive says that the company could move production of all iPhones destined for the USA out of China if the current trade war demands it. Hon Hai, also known as Foxconn, is now Apple's top manufacturing partner.

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Foxconn straddles the world's two largest economies because it manufactures most of its devices in China, many of which then find their way to American consumers. With President Donald Trump threatening Beijing with imposing new tariffs on about $300 billion worth of Chinese goods, the giant of Cupertino will have a complicated situation to deal with. However, just because it would be possible for Apple to shift production outside China doesn't mean it would be easy-or cheap.

Hon Hai, which is the parent company of Foxconn, Apple's number one partner that helps make the iPhone, can move production out of China if needed, board nominee and semiconductor division chief Young Liu was quoted as saying at an investor briefing in Taipei by Bloomberg. The Taiwanese agreement producer, recognized additionally as Foxconn Innovation Team, now makes a lot of the mobile phones in the Chinese landmass. But he said the company is capable of moving production lines elsewhere according to customers' needs.

The news should be particularly encouraging given the alternative scenario which would likely see Apple having to bear the brunt of a more costly iPhone. Although Apple can relieve counting on Foxconn exterior of China, a couple of of its particular particular person factor suppliers are calm located within the pickle - there'll in all probability be danger if any of those companions are reduce relieve off. In May, a team of analysts at Morgan Stanley led by Katy Huberty wrote in a note to clients that Apple's iPhone XS could become more expensive to produce as a result of Trump's recent tariff increase.

China is a key market for Apple - it's the firm's third largest market following the Americas and Europe.