Exclusive: Foxconn to shift some Apple production to Vietnam to minimise China risk

TAIPEI (Reuters) – Foxconn is moving some iPad and MacBook assembly to Vietnam from China at the request of Apple Inc, said a person with knowledge of the plan, as the U.S. firm diversifies production to minimise the impact of a Sino-U.S. trade war.

The development comes as the outgoing administration of U.S. President Donald Trump encourages U.S. firms to shift production out of China. During Trump’s tenure, the United States has targeted made-in-China electronics for higher import tariffs, and restricted supplies of components produced using U.S. technology to Chinese firms it deems a national security risk.

Taiwanese manufacturers, wary of being caught up in the tit-for-tat trade war, have moved or are considering moving some production from China to countries such as Vietnam, Mexico and India.

Foxconn is building assembly lines for Apple’s iPad tablet and MacBook laptop at its plant in Vietnam’s northeastern Bac Giang province, to come

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Breakingviews – Foxconn hitches bumpy ride with electric vehicles

FILE PHOTO: Foxconn Chairman Liu Young-way speaks at an event presenting the company’s new technologies in Taipei, Taiwan October 16, 2020. REUTERS/Yimou Lee/File Photo – RC23QJ90N3KX

HONG KONG (Reuters Breakingviews) – Foxconn is hitching a bumpy ride with electric vehicles. The $39 billion iPhone-assembler, formally known as Hon Hai Precision Industry, wants to diversify by supplying parts for 10% of the world’s green cars by 2027. It’s an ambitious and risky goal, but the Taiwanese technology giant’s electronics expertise and deep pockets put it in a strong starting position.

A recent emphasis on autos is Foxconn’s latest attempt to reduce dependence on Apple, which accounts for about half its revenue. Broadly speaking, contract-manufacturing for electronics is a low-value business: Foxconn’s net profit margin has been shrinking for years, to nearly 2%. Moreover, the situation has become more precarious as rivals such as China’s Luxshare vie for Apple’s attention.

In a

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Foxconn construction continues, but the company is silent about hiring

The Foxconn Technology Group project in Mount Pleasant was billed as an economic game changer for Wisconsin.

In 2018, President Donald Trump came to the village and, alongside then-Gov. Scott Walker and Foxconn founder Terry Gou, literally put a golden shovel in the ground and declared the development would become “the eighth wonder of the world.”

Two years later, the project has been dramatically scaled back and has failed to hire enough people to win even the first promised job-creation payments from the state. 

And, one week from the Nov. 3 election, one of Trump’s signature promises in Wisconsin – part of a pledge to create a boon of manufacturing jobs in the state – is a long way from being fulfilled.

As originally described in 2017, Foxconn was to build a Generation 10.5 facility that would manufacture large LCD screens. The project was to be an investment of up

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Apple supplier Luxshare unnerves Foxconn as U.S.-China feud speeds supply chain shift

TAIPEI/SHANGHAI (Reuters) – Apple’s AAPL.O top iPhone assembler, Taiwan-based Foxconn, has set up a task force to fend off the growing clout of Chinese electronics manufacturer Luxshare, which it believes poses a serious threat to its dominance, three sources with knowledge of the matter said.

FILE PHOTO: Foxconn Chairman Liu Young-way speaks at an event presenting the company’s new technologies in Taipei, Taiwan October 16, 2020. REUTERS/Yimou Lee/File Photo

The project was initiated by Foxconn’s founder Terry Gou, according to one of the sources, to target Dongguan-based Luxshare 002475.SZ, which is little-known internationally but is poised to become the first mainland China-headquartered firm to assemble iPhones – a turf until now dominated by Taiwanese manufacturers.

The task force, which the sources say was created last year, has been looking into Luxshare’s technology, expansion plan, hiring strategy and whether the company – which currently makes

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