An executive with contract manufacturer Foxconn told investors the company would be capable of shifting production of Apple’s iPhone line out of China, should it become necessary due to a trade war with the US, Bloomberg reported.
Young Liu, board nominee and semiconductor chief who is mooted as future CEO, said 25 per cent of its production capacity is outside of China and “we can help Apple respond to its needs in the US market”.
Foxconn is already making investments in India to support Apple’s work there, with reports production tests on iPhone XR models is already under way.
Older iPhone models are also being constructed at a plant owned by Wistron in India.
Foxconn had also pledged to invest in manufacturing capabilities in the US, although The Verge this week reported the company had “fallen so far behind schedule and changed its plans so drastically” it may lose out on subsidies pledged by the administration in Wisconsin.
While so far most of the damage done in the trade war in terms of tech has fallen on Huawei, Apple is an obvious target should China decide to step-up its retaliation.
In addition to its work with Foxconn on production, China is an important market for the US vendor.