Foxconn says its global manufacturing footprint should protect the company from U.S. tariffs
Taiwan’s Foxconn said on Wednesday it expects the impact of new tariffs from newly-elected US President Donald Trump to hit the country less than its rivals, citing its global manufacturing footprint.
Young Liu, chairman of the contract manufacturer and key Apple supplier, told reporters after a forum in Taipei that he saw the most significant impact of any new tariffs on his customers because his business model was based on contract manufacturing.
“Customers may decide to move production sites, but looking at Foxconn’s global footprint, we are ahead of the curve. As a result, the impact on us is likely to be smaller compared to our competitors,” he said.
US President-elect Donald Trump said on Monday that he will impose a 25 percent tariff on all products from Mexico and Canada on his first day in office, and an additional 10 percent tariff on goods from China.
Foxconn, the world’s largest contract electronics manufacturer, has major manufacturing facilities in China, including a massive iPhone assembly plant.
However, it has increased investments in other countries such as the United States, Mexico and Vietnam as part of a supply chain diversification. It is building a large manufacturing facility in Mexico to produce Nvidia’s GB200 superchips.
Liu said Foxconn would not be able to share more details about the company’s U.S. plans until after Jan. 20, once Trump takes office and his policies become clearer. “After that, we will have a corresponding strategy,” he said.
“What you see now is a game between countries, not yet between companies. Whether it’s 25 percent or another 10 percent, the outcome is uncertain as they continue to negotiate. We are continuously adapting and refining our global strategy.”
During Trump’s presidency in 2017-2021, Foxconn announced a $10 billion (about Rs. 84,425 crore) investment in Wisconsin, which the company later largely abandoned. Foxconn on Tuesday said a subsidiary had spent $33 million (about Rs. 278 crore) to acquire land and factory buildings in Harris County, Texas.
Foxconn will continue to invest in Mexico, Liu added, as it believed the trend is moving toward regional production.
© Thomson Reuters 2024
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
