August 1, 2021

Foxconn boss pushes Apple to move production to Taiwan

The founder of the group wants to relocate production from Apple to Taiwan to escape the trade war between the United States and China, as well as the customs taxes envisaged by Donald Trump on imported products.

« I will beg Apple to come to Taiwan “. It is with this concise declaration that Terry Gou, founder and former president of Foxconn, answered the question of relocation of production sites.

Foxconn could be hit hard by taxes being considered by US

The group is now the largest Chinese employer, with more than 1 million employees. It has many factories all over the country and especially in Zhengzhou, where most of the electronic products distributed around the world are manufactured.

Among all the brands using the services of the subcontractor, Apple is one of the most important customers thanks to the production of different iPhones and iPads. We think that Apple accounts for half of turnover from Foxconn today.

A complex relocation that is not yet seriously considered by Apple

The company wants today relocate a large part of its production sites in Taiwan because of the trade war that the United States and China have been waging for several months. President Donald Trump has recently indicated that he wants significantly increase customs fees on some $ 300 billion in goods made in China and imported into the United States.

To avoid these taxes, many Taiwanese companies assess the cost of relocating all or part of the different factories. Apple has also reportedly asked to look at the costs of moving 15-30% of its production from China to Southeast Asia.

But for the moment the builder does not plan in the short or medium term to relocate its production lines, given the complexity of the operation and no doubt betting on a lull in relations between the two super powers.

Source : Bloomberg