Hon Hai Precision Industry Co. (Foxconn) Chairman Young Liu has said China’s “days as the world’s factory are done,” largely because of the US-China trade war.
Foxconn is the primary manufacturer of Apple’s iPhone, as well as a leading manufacturer for other smartphones and devices. The company has primarily operated factories in China, where there is an entire ecosystem geared toward tech manufacturing.
US officials have grown increasingly worried about the tech industry’s reliance on China, especially after the pandemic hit. As factories across China shut down, countless US companies saw production significantly impacted. The escalating trade war between the US and China has only made things worse.
As a result, according to Bloomberg, Liu believes manufacturing will become decentralized across the world, with manufacturing ecosystems in the Americas, India and Southeast Asia. Already Foxconn has managed to move 30% of its manufacturing outside of China.
Meanwhile, officials have been focusing on boosting semiconductor manufacturing within the US to help end reliance on China. It would seem there is merit to Liu’s prediction.