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Foxconn: Ready to Move Production Out of China If Necessary

Smartphone assembler Foxconn has notified companies that with the trade war backdrop, it can move electronics production for the US market out of China at short notice. It is also planning to start production at its US Wisconsin plant by the end of 2020.

Foxconn now has 25% of its production capacity outside China and is mindful of helping clients like Apple should they want to shift production out of China – to date this has not been officially requested.

Shifting production capacity will require additional capex which will be beneficial for automation and machinery manufacturers, but Foxconn has said spending will be focused on developing new technological capabilities in new business fields as opposed to just extending production capacity overseas. The Foxconn Founder mentioned last year a potential solution whereby 80% of workers would be replaced by robots.

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