The world’s two largest contract electronics suppliers, Foxconn and Quanta Computer, said on Wednesday that they will continue to move production capacity out of China to cope with the protracted trade war.
“The U.S.-China trade war is very dynamic and our clients are monitoring the situation closely,” Foxconn Chairman Young Liu told reporters. “We have to be well prepared and expand capacity at the fastest pace when our clients make decisions [to move].”
Formally traded as Hon Hai Precision Industry, Foxconn’s other key clients include China’s Huawei Technologies, Google, Amazon and Tesla. The company makes a wide range of goods such as smartphones, PCs, servers and electronics components, many of which have been hit by Washington’s tariffs.
Foxconn has manufacturing facilities in 16 countries, but 75% of its capacity is in China. It is the country’s largest employer and exporter. But now the company’s decadeslong production portfolio has begun to change owing to the trade tensions. (more…)