Taiwan's Foxconn says global manufacturing footprint to shield it from Trump's tariffs
Adds quotes, background on Foxconn's manufacturing footprint
By Wen-Yee Lee
TAIPEI, Nov 27 (Reuters) -Taiwan’s Foxconn 2317.TW said on Wednesday it expects any impact of new tariffs from U.S. President-elect Donald Trump to hit it less than its rivals, citing its global manufacturing footprint.
Young Liu, chairman of the contract manufacturer and key Apple AAPL.O 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 was 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.
U.S. President-elect Donald Trump said on Monday that on his first day in office he will impose a 25% tariff on all products from Mexico and Canada, and will charge goods from China an additional 10% tariff.
Foxconn, the world's largest contract electronics maker, has large manufacturing facilities in China including a giant iPhone assembly plant.
However, it has been increasing its investments in other countries such as the United States, Mexico, and Vietnam as part of a supply chain diversification effort. In Mexico, it is building a large manufacturing facility to produce Nvidia’s NVDA.O GB200 superchips.
Liu said Foxconn would only be able to share more details about the company's U.S. 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% or an additional 10%, the outcome is uncertain as they continue to negotiate. We are constantly adapting and refining our global strategy.”
During Trump's 2017-2021 presidency, Foxconn announced a $10 billion investment in Wisconsin that the company later mostly abandoned. On Tuesday, Foxconn said a subsidiary had spent $33 million to acquire land and factory buildings in Harris County, Texas.
Foxconn will continue investing in Mexico, Liuadded as it believed the trend was moving towards regional manufacturing.
Reporting by Wen-Yee Lee, Writing by Brenda Goh; Editing by Muralikumar Anantharaman and Lincoln Feast.
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
