Foxconn declares China is no longer the factory center of the world, plans massive split

foxconn split with china and the us Rect

Apple has been pushing suppliers to leave China more aggressively in the past few years, and more in recent months. Now, it seems ot be paying off. Foxconn, a major Apple supplier alongside dozens of others are planning to split its supply china between China, and the US, as Bloomberg reports:

Hon Hai Precision Industry Co. Chairman Young Liu 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%, up from 25% last June.


Foxconn chairman Young Liu in a call with reports said Foxconn will move some of its production away from China and into Southeast Asian countries and other regions to avoid tariffs in the US-China trade war.

“No matter if it’s India, Southeast Asia or the Americas, there will be a manufacturing ecosystem in each,” Liu said, 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.”


The company also reported better than expected quarterly revenue thanks in large part to a boost in demand for iPads and MacBooks. Revenue was NT$1.3 trillion for Q2, however, Liu is warning that Q3 numbers will be lower due to the delay of this year’s iPhone. In the long term, Foxconn’s shift into India where it is already setting up base will inevitably help boost squarely performance.

Domestically within the region, Luxshare poses its biggest threat as it gears up to join the iPhone supply chain amid pushes by Apple themselves to compete with Foxconn.

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Sami started falling in love with Apple in 2010 with the iPhone 4S. As a registered developer, he deeply admires the world of Apple. Sami is an aspiring journalist, writer, and actor. He also has devoted his life to sharing his passion and knowledge with others around the world.