Workers on a Foxconn production line
Foxconn chairman Young Liu has reassured workers at its Chengdu factory that it is an “important” base of production, despite Apple’s discussions on diversifying manufacturing away from China and into other countries.
The South China Morning Post reports Foxconn chairman Young Liu attempted to give reassurance to the workers at its Chengdu factory, one that has over 100,000 employees. Foxconn, according to Liu, is committed to using the factory for production, and doesn’t plan to leave the city at all.
The factory, which produces iPads among other items, is an “important” production base to Liu, and he intends to stick around.
“All the products were made by you, and we should be grateful for that,” Liu said to appease workers. “We have no plans to exit Chengdu. I hope that Chengdu could become an important base in the western [region of China] to support hi-tech industries, and make more money [for it’s people].”
Events such as the COVID-19 pandemic and the US-China trade war have prompted Apple to reconsider its China-centric production, in favor of other areas. By spreading manufacturing to other countries, such as India and Vietnam, Apple can insulate itself from such events.
In 2022, the Chengdu factory was ordered to stop production by local government officials, to try and conserve electricity during a heatwave. Elsewhere in China, the Zhengzhou factory was the victim of tough COVID-19 controls in the region, which led to assembler riots and workers leaving, as well as a significant cut in iPhone 14 Pro supplies.
