Foxconn Technology Group (富士康科技集團) yesterday said it expects any impact of new tariffs from US president-elect Donald Trump to hit the company less than its rivals, citing its global manufacturing footprint.
Young Liu (劉揚偉), chairman of the contract manufacturer and key Apple Inc supplier, told reporters after a forum in Taipei that it saw the primary impact of any fresh tariffs falling on its clients because its business model is based on contract manufacturing.
“Clients may decide to shift production locations, but looking at Foxconn’s global footprint, we are ahead. As a result, the impact on us is likely smaller compared to our competitors,” he said.
Photo: Reuters
Trump on Monday said that on his first day in office he would impose a 25 percent tariff on all products from Mexico and Canada and would charge goods from China an additional 10 percent tariff.
Foxconn, the world’s largest contract electronics maker, has large facilities in China, including a giant iPhone assembly plant.
However, it has been increasing its investments in other countries, such as the US, Mexico and Vietnam, as part of a supply chain diversification effort. In Mexico, it is building a large manufacturing facility to produce Nvidia Corp’s GB200 superchips.
Liu said Foxconn would only be able to share more details about the company’s US plans after Jan. 20, once Trump takes office and his policies become clearer.
“After that, we will have a corresponding strategy in place,” he said.
“What you’re seeing now is a game between nations, not yet between companies. Whether it’s 25 percent or an additional 10 percent, the outcome is uncertain as they continue to negotiate. We are constantly adapting and refining our global strategy,” Liu said.
During Trump’s previous presidency from 2017 to 2021, Foxconn announced a US$10 billion investment in Wisconsin that the company later mostly abandoned. On Tuesday, Foxconn said a subsidiary had spent US$33 million to acquire land and factory buildings in Harris County, Texas.
Foxconn will continue investing in Mexico, Liu added, as it believed the trend was moving toward regional manufacturing.
Hon Hai Precision Industry Co (鴻海精密), the flagship firm of the group, has invested US$33.03 million to buy land and a building in Texas that sources say would be used to expand the company’s artificial intelligence server production in the US.
In a statement posted on the Taiwan Stock Exchange (TWSE), where Taiwan-based Hon Hai’s shares are traded, the company on Tuesday said that subsidiary Foxconn Assembly LLC has acquired 478,036m2 of land and a building with an area of 200,200m2 in Harris County.
At an investors’ conference last month, Liu said his company would continue to invest in artificial intelligence products and electric vehicles in the US market.
According to Liu, Hon Hai has invested in the US for almost four decades and now operates 50 facilities there with a workforce of about 5,000 people that generate US$25.6 billion in annual sales.
Additional reporting by CNA
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