iPhone Assembler Foxconn Brushes Off Risks of U.S.-China Trade Tensions
June 11 2019 - 5:46AM
Dow Jones News
BEIJING--Taiwan's Foxconn Technology Group, which assembles
Apple Inc.'s iPhones in China, is prepared to deal with risks
stemming from the trade dispute between the U.S. and China,
executives said Tuesday.
Though clients including Apple and China's Huawei Technologies
Co. have made some changes to their orders, Foxconn faces limited
impact from such moves, said Young Liu, the head of Foxconn's
semiconductor business group, at an investors' conference.
Both technology companies have been caught up in the trade
tensions between the U.S. and China.
Should Apple need to move its supply chain, Foxconn could do so
quickly and expand production at any of its sites outside mainland
China, Mr. Liu said at the conference, which took place at
Foxconn's headquarters near Taipei. Foxconn relies on Apple for
about 50% of its revenue, analysts have said.
Not only does Apple makes most of its iPhones in China, it also
relies on China as a market. The company would be hit hard if
President Trump's most recent threatened tariffs on Chinese goods
go into effect.
Huawei has been the target of a series of U.S. actions that
threaten its dominance in telecommunications technology.Among them,
Huawei and its subsidiaries' are on an export blacklist that cuts
it off from American technology, severely limiting its ability to
procure U.S. components for smartphones and other products.
Foxconn, formally known as Hon Hai Precision Industry Co., also
outlined its leadership succession plan, saying it is setting up a
committee of nine executives to make decisions on corporate
strategy. The operational committee would be under the executive
board, Mr. Liu said.
Terry Gou, Foxconn's founder, is seeking to run in Taiwan's
presidential election and is preparing to step down as
chairman.
Yang Jie
and Yoko Kubota
(END) Dow Jones Newswires
June 11, 2019 05:31 ET (09:31 GMT)
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