Foxconn does not intend to shut down a major iPhone

Foxconn does not intend to shut down a major iPhone factory in Chengdu, China

Taiwanese contract electronics manufacturer Foxconn, the main assembler of the iPhone and other Apple products, has tried to persuade workers and officials in the Chinese city of Chengdu to allow local production to continue. The statement had to be made amid rumors of factories potentially relocating to other countries such as India.

    Liu Wang-wei.  Image source: EPA-EFE

Liu Wang-wei. Image source: EPA-EFE

Foxconn chairman and CEO Liu Young-Way said the company has no intention of leaving the city and the plant, which employs more than 100,000 people, will remain a key manufacturing base. According to Liu, Chengdu manufacturing can become an important platform in western China to support high-tech industries and bring people income.

Foxconn is the world’s largest contract manufacturer of the iPhone and iPad, making the company a key player in the Apple manufacturing chain. While mainland China remains Taiwan’s Foxconn’s main manufacturing base, rising wages in China and production disruptions during the COVID-19 outbreak have prompted the company to diversify production by building factories in countries like Vietnam and India. Liu has met with Indian Prime Minister Narendra Modi twice in the past 12 months.

At the same time, Foxconn is trying to convince the local Chinese authorities that there is nothing to worry about and that production in China will continue. Earlier this year, Liu visited the city of Zhengzhou, where Foxconn owns the world’s largest iPhone factory, and during the time unveiled a new business center in the city. During his visit to Chengdu, Liu also met with local party authorities, who, according to some sources, had requested further investment in the province.

Strict quarantine regulations related to the COVID-19 outbreaks in China last November sparked riots at a factory in Zhengzhou, resulting in production halts for the iPhone 14 series smartphones.

According to media reports, Foxconn is losing some orders today and giving way to competitors, most notably Luxshare Precision Industry Co. Apple is using China’s Luxshare and Taiwan’s Pegatron to assemble the iPhone 15, which will be unveiled later this year. According to some reports, Pegatron and Luxshare together can get up to 25% and 30% of the orders for the iPhone 15 Pro and Pro Max release, respectively.

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Johnson Smith

Johnson Smith is interested in Home Theater & Audio, Smart Tech, Google News & Products, How To, Apple News & Products, Cell Phones, Automotive Technology.

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