Foxconn can move iPhone manufacturing completely out of China if required

Major iPhone manufacturer, Foxconn, has come out to say that it has enough capacity to move iPhone production completely out of China and still meet U.S. domestic market demands, if necessary.

As it stands, China remains a very important part of Apple’s supply chain. The country not only manufactures iPhone, iPad and Mac computers (among others) but it is also the source of many of the components required to make those devices. Beyond manufacturing, China is also Apple’s largest international market.

While tensions between China and the U.S. over an ongoing trade war see no signs of letting up, Foxconn — Apple’s most prolific manufacturer — is prepared and capable to move its manufacturing (for Apple products to be exported to the U.S.) out of China should relations between the two countries become more tense, board nominee and semiconductor division chief Young Liu told an investor briefing in Taipei earlier this week.

“25% 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,” Bloomberg reported.

However so far, Liu said, Apple has not given any instructions to Foxconn to move production out of China.

One in every four iPhone sold worldwide and sold in the U.S., according to analysts. To meet the demand, Foxconn would need at least one or two substantial factories outside China.

Foxconn is said to have invested 25 billion Indian rupees (RM1.48 billion) to expand its Indian plant to cater for iPhone manufacturing. Currently, the plant which is located in the town of Sriperumbudur in the southern state of Tamil Nadu produces phones for Xiaomi, OnePlus and Gionee.