Foxconn can move iPhone manufacturing completely out of China if required

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However, Liu confirmed that Apple is yet to instruct Foxconn to move manufacture outside of China. With ongoing US Trade War with China, the Cupertino tech giant seems to have a contingency plan if the things go unfavorable as a result of the trade war. The Taiwanese partner now makes most of the smartphones in the Chinese mainland. Much of the discussion, however, centered on the worsening trade dispute between China and the United States and the impact tariffs might have on Foxconn's business of assembling iPhones and iPads for Apple, mostly in China.

As Apple provides close to half of Foxconn's revenue, a decreased demand for iPhones leads to a drop in manufacturing demand for the company.

According to a senior executive at Hon Hai Precision Industry Co Ltd.

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Apple's production in China has become a major concern for investors as the Trump administration escalates threats to hit Beijing with new tariffs on about $300bn worth of Chinese goods.

"We are totally capable of dealing with Apple's needs to move production lines if they have any", said Young-Way Liu, the head of Foxconn's semiconductor business group.

Foxconn has been exploring its options, considering moving some of its production to plants in India as a way to diversify its supply chain away from China, where most of the firm's production facilities current are stationed. Foxconn already has facilities in India, and it was reported in 2017 that the company would be investing as much as $356 million to expand its high-end iPhone assembly to the country. As for the localized production possibility, Foxconn has arranged to build a 13,000-worker facility in Wisconsin for more than Dollars 4.5 Billion in government incentives. On Tuesday, executives reaffirmed that employment goal, saying construction remained on schedule and that it will hire as many as 2,000 Americans by the end of 2020.

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