December 31, 2016 1:20 am JST
As Trump presidency nears, defiant Foxconn 'will not leave China'
Key iPhone maker commits to new China facility despite U.S. tariffs threat
DEBBY WU, Nikkei staff writer
asia.nikkei.com
TAIPEI -- Terry Gou, chairman of key iPhone assembler Hon Hai Precision Industry, also known as Foxconn Technology Group, said on Friday that his company will not decamp from China.
His statement came at a time when U.S. president-elect Donald Trump is demanding that American companies, particularly Apple, bring manufacturing jobs back to the U.S. from Asia and elsewhere. Trump has also threatened to slap a stiff 45% tariff on Chinese and Mexican imports.
Foxconn and its smaller Taiwanese rival Pegatron now churn out more than 200 million iPhones every year for Apple on their Chinese campuses. Foxconn, a top Chinese exporter, employs about 1 million workers in China, with half of its revenue coming from Apple.
On Friday, Gou appeared defiant in the face of Trump's tough stance when he announced a joint investment of 61 billion yuan ($8.77 billion), made with the government of the southern Chinese city of Guangzhou, to build an advanced panel facility.
"Foxconn will not leave. Foxconn will stay here," Gou told reporters in Guangzhou when asked whether he plans to move manufacturing sites to the U.S.
"The best proof is that Foxconn has picked the last day of the year to sign a major investment agreement and give (China) the best technology," Gou said.
continues at the link |
