In light of escalating tensions between the United States and China, Foxconn, the company behind iPhone manufacturing, has decided to shift its focus toward the production of automobiles.
Established in 1974 under the name Hon Hai Technology Group, Foxconn initially specialized in manufacturing knobs for televisions. Over the years, it has transformed into one of the most influential technology companies globally, boasting an impressive annual revenue of $200 billion (£158.2 billion).
While Foxconn’s reputation primarily stems from being the leading manufacturer of over half of Apple’s range, encompassing iPhones to iMacs, its client portfolio extends beyond Apple to include notable names such as Microsoft, Sony, Dell, and Amazon.
For decades, Foxconn has flourished by adhering to the playbook employed by multinational corporations: product design originates in the United States, manufacturing takes place in China, and the finished products are distributed globally. This strategic approach has propelled Foxconn’s evolution from a modest component-making enterprise to the colossal consumer electronics giant it stands as today.
However, with the deterioration of relations between Washington and Beijing, global supply chains are undergoing adjustments, placing Foxconn in an unfavorable position. As the world’s two largest economies and the very nations that have fueled its growth thus far, Foxconn finds itself caught in the middle. The United States and China are embroiled in numerous disputes, spanning trade issues to conflicts such as the war in Ukraine. One of the most significant potential points of contention lies in Taiwan, where Foxconn has its headquarters. Currently, Foxconn will continue its primary focus on excelling in its core competency: manufacturing electronic products for clients. However, it is conceivable that in the not-too-distant future, Foxconn may venture into the realm of selling its own automobiles.