Foxconn denied rumors of ‘leaving China with Apple’

28 Jul No Comments
In a post on WeChat, Foxconn confirmed that the company will continue to operate in China and has no plans to divest. Foxconn – partner of Apple’s iPhone and iPad products – has denied that it will withdraw production from the Chinese market due to US-China trade tensions. “Rumors of Foxconn leaving China are not true”, the company said in a post on WeChat. The article also emphasizes that Chinese employees are invaluable assets, and insists that the company will continue to grow deeper in the country. According to SCMP, Foxconn currently has 45 factories scattered across China, along with about 1 million workers. The company added that all operations across China are still completely normal and do not have a divestment plan. Earlier, Mr. Young Liu, the head of the company’s semiconductor division, said the company would support Apple if they needed to move production elsewhere in case of Us-China disputes become more intense. “25% of our production capacity is outside China and we can meet Apple’s needs in the US market. We have the capacity to do that”, Liu told Bloomberg. In addition to Apple, the company is also responsible for outsourcing products to other major Chinese brands such as Huawei. However, the company stopped producing on some assembly lines for Huawei smartphones because telecommunications equipment suppliers reduced orders. Recent moves by Foxconn show that the company is expanding its operations into other economies. In an event in April, Terry Gou, Foxconn founder, said the company will begin mass production of iPhones in India this year. In addition, the company will be more involved in developing the smartphone industry in this country.