The possibility that the iPhone will become 'Made in Mexico' emerges, due to the trade war with China

Due to the US-China trade war, Foxconn, Pegatron, and Luxshare, which provide iPhone manufacturing parts to Apple, will set up a new plant in Mexico, Reuters reported.

Exclusive: Foxconn, other Asian firms consider Mexico factories as China risks grow-Reuters
https://www.reuters.com/article/us-mexico-china-factories-exclusive-idUSKBN25K17X

President Trump has professed that 'the trade imbalance with China' has been a problem during the presidential election, and he has continued to take a strong stance towards China even after he took office as president. Starting in 2018, the Trump administration announced an additional tariff of 34 billion dollars (3.6 trillion yen) for 818 items imported from China, and China also announced retaliation tariffs of the same scale. In 2019, both the United States and China announced that they would impose additional tariffs on almost all exports of each other. The series of problems is called the ' US-China trade war .'

Due to the US-China trade war, the United States imposes high tariffs on electronic devices and components imported from China, and Foxconn, who disliked this tariff, is part of the supply chain that was previously in China. Is planning to relocate outside China. According to Bloomberg, who reported the case, Foxconn Chairman Yang Liu said, 'The days when China is the world's factory are over.'

Foxconn, which manufactures iPhones and Nintendo Switches, moved its manufacturing base to outside of China, ``The era when China is the world's factory is over''-GIGAZINE

by iphonedigital

In 2019, Foxconn said it would `` expand to India'', but according to information newly obtained by Reuters, it is planning to establish a new iPhone manufacturing plant in Mexico, which will be used for iPhone manufacturing. There is a possibility that it will be. According to sources, Foxconn is already in contact with the Mexican government and is in the process of initial negotiations for a new plant. Foxconn owns five TV server manufacturing plants in Mexico, but is expected to add a new iPhone production site. According to one of the sources, Apple wasn't involved in the factory redesign.

Like Foxconn, Apple's suppliers Pegatron and Luxshare are also reportedly looking to Mexico. Pegatron is in talks about a facility for assembling IC chips and electronic parts, and Luxshare is also proceeding with a facility construction plan. ``Foxconn will set up a factory in Ciudad Juarez , located along the northern border of Chihuahua, '' said Armando Chen, director of the Taipei Economic and Cultural Office, the official contact point for Taiwan's foreign affairs in Mexico. I've heard that you're interested in the plan to build a new one, and Pegatron also wants to move its production line from China to Mexico,' he said.

Note that Apple, Foxconn, Pegatron, and Luxshare did not respond to requests for comment from Reuters.