Apple’s largest manufacturing Foxconn says it has enough manufacturing capacity outside of China to make all U.S.-bound iPhones outside of China if the U.S. – China trade war continues to heat up.
Foxconn board nominee and semiconductor division chief Young Liu, made the comments at an investor briefing in Taipei on Tuesday, reports Bloomberg.
Liu says Foxconn (Hon Hai) will “fully support Apple if it needs to adjust its production.”
“Twenty-five percent of our production capacity is outside of China and we can help Apple respond to its needs in the U.S. market,” said Liu, adding that investments are now being made in India for Apple. “We have enough capacity to meet Apple’s demand.”
Liu admitted Foxconn had not yet been instructed by Apple to move iPhone production outside of China, but said the company is “capable of moving lines elsewhere according to customers’ need.”
Foxconn has been exploring its options, considering moving some of its production to plants in India as a way to diversify its supply chain away from China, where most of the firm’s production facilities current are stationed.
Apple contracts with Foxconn for manufacturing of their iPhone lineup. Foxconn already has facilities in India, and it was reported in 2017 that the company would be investing as much as $356 million to expand its high-end iPhone assembly to the country.
Apple and other tech firms are exploring ways to move product production from China to other countries as the tariff war between the United States and China continues to rage.