Taiwanese contractor for Apple may shift production to U.S.

Nov 28, 2016 (LBO) – Hon Hai Precision Industry, the Taiwanese contract manufacturer of Apple products, may shift its production from China to the U.S, media reports said, with “Made in China” likely to lose ground under a Trump presidency.

The speculation is not new, but the President-elects threats to slap heavy tariffs on Chinese exports have increased the likelihood of such a move, the Nikkei Asian Review reported.

In June, Apple allegedly asked Hon Hai to shift production of the iPhone to the United States.

Hon Hai is the world’s largest electronics manufacturing services company — though based in Taiwan, Hon Hai epitomizes China as the world’s factory — the company accounted for around 6 percent of China’s entire trading value around 2011.

Earlier this year, it acquired Japanese electronics manufacturer Sharp.

Due to the rising labor costs, Hon Hai and Apple have reduced their dependence on China and expanded into countries like Brazil and India.

Even without the proposed tariffs, Chinese-made goods are already becoming less competitive in the U.S. “Made in China is disappearing from the U.S. market,” one story warned last year.

The story has been circulated by Chinese media several times since. The article explained that of seven items of sportswear the reporter bought in the U.S., including brands like Nike and Adidas, only one was made in China. The others were made in Vietnam, Indonesia, Egypt, Bangladesh or Thailand.