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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Foxconn to Move Some Production of iPads and MacBooks to Vietnam

(Bloomberg) — Foxconn Technology Group will move the manufacturing of some Apple Inc. iPads and MacBooks to Vietnam from China, a person familiar with the matter said, as the company aims to mitigate the risk that a trade war with the U.S. could continue after U.S. President Donald Trump leaves the White House.

a group of people in a kitchen: Employees of Hon Hai Precision Industry Co. Ltd. work along a production line in the Longhua Science and Technology Park, also known as Foxconn City, in Shenzhen, China, on Saturday, Sept. 4, 2010.

© Bloomberg
Employees of Hon Hai Precision Industry Co. Ltd. work along a production line in the Longhua Science and Technology Park, also known as Foxconn City, in Shenzhen, China, on Saturday, Sept. 4, 2010.

The person asked not to be identified because the plans are still private. The company, whose formal name is Hon Hai Precision Industry Co., is building assembly lines for Apple’s tablet and notebook products at its plant in the northern Vietnamese province of Bac Giang, which will come online in the first half of 2021, Reuters reported earlier Thursday, citing an unidentified

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Foxconn Sees Apple iPhone 12 Boost After Q3 Profit Beat

Foxconn Technology Group  (FXCNY) , the world’s biggest electronics manufacturer and Apple Inc.’s  (AAPL) – Get Report most important supplier, posted stronger-than-expected third quarter profits and forecast solid revenues for the coming year amid an expected jump in post-pandemic demand for new smartphones and laptops. 

Foxconn, formally known as Hon Hai Precision Industry Co. Ltd., said net profits for its September quarter rose 1% to T$30.8 billion, or just under $1.1 billion, and came in ahead of analysts’ forecasts of a T$28.6 billion tally.  Group revenues fell 7% from last year to T$1.29 billion, Foxconn said, while profit margins improve by 20 basis points to 2.39%.  

Foxconn said it sees current-quarter revenues within a range of -3% to +3% when compared to last year, but notes that 2021 sales will grow by around 10% amid what it sees as strong demand for consumer electronics in general

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Apple Supplier Foxconn Third-Quarter Profit Growth Near Flat, Beats Estimates | Technology News

TAIPEI (Reuters) – Foxconn, the world’s largest contract electronics maker, reported near flat quarterly profit on Thursday, beating market estimates amid firm demand for telecommuting devices as the pandemic-induced work-from-home trend continues.

The Taiwanese company, whose clients include technology majors such as Apple Inc, booked July-September net profit of T$30.8 billion ($1.08 billion), Reuters calculations showed based on nine-month figures.

That compared with the T$28.61 billion average of 13 analyst estimates compiled by Refinitiv. Profit growth was nearly flat versus the T$30.7 billion of the same period a year prior.

Chief Financial Officer David Huang told an investor conference that third-quarter revenue fell 7% due to clients delaying product launches.

Still, Chairman Liu Young-way said Foxconn saw “stronger than expected” demand for both smartphones and servers, with strong shipments of Apple’s new iPhone 12 supporting revenue.

Foxconn, formally Hon Hai Precision Industry Co Ltd, said it expected revenue to rise

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