The Sino-US trade war is getting more and more serious, how does Hon Hai Group transfer capacity?

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/ 2019-06-13 / News

Hong Yang Group's director candidate and general manager of the S group, Liu Yangwei, said that it is difficult to predict the tariff-war areas and countries launched by the United States, but the United States and Mexico are not subject to trade war tariffs. Influential countries, Honghai will make relevant plans in these two places. If it is really necessary to expand production or transfer capacity, it will be based on existing plants.

Hon Hai held a press conference after the end of the law conference, and asked the on-site media about the US-specific country Tariffs, if Hon Hai wants to avoid the [u> switch tax, the question of which countries can transfer capacity.

Liu Yangwei responded that the trade war launched by US President Trump has adopted tariff measures, but will be adjusted after appropriate time to negotiate, so it is difficult to predict which country. Liu Yangwei pointed out that, for example, the United States has now lifted tariff measures against Mexico, and Hon Hai itself has appropriate scale in the local area, and will make appropriate adjustments. Mexico is not affected by tariffs, and other difficulties are difficult to predict.

In addition, Hon Hai’s investment in the United States will be carried out in accordance with the original plan. This is a part of Hon Hai’s establishment of a supply chain in the local area. Monitor, server-related products and in-vehicle control products are currently expected to be mass-produced in the first phase by 2020. The United States and Mexico are the places most affected by tariffs, and relevant plans will be made in these two places.

Honghai currently has production bases in 16 countries and 25% capacity outside mainland China to meet the demand for exports to the United States.Assuming that Hon Hai wants to expand production or transfer capacity in the future, it will expand with existing plants because it is faster to implement.

Keywords: Hon Hai Foundry
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