[News] U.S. Cuts China Tariffs to 30%, Offering Relief to Taiwan ODMs Foxconn, Compal, and Quanta

On May 12, the U.S. and China announced a 90-day tariff reduction, cutting U.S. duties on Chinese goods from 145% to 30%. According to Economic Daily News, the move is expected to ease pressure on major contract manufacturers with significant operations in China, including Foxconn, Compal, Quanta, Inventec, Wistron, and Pegatron. Below is an overview of their China-based production capacity and efforts to diversify amid rising geopolitical risks.

Foxconn

While Foxconn has been gradually reducing its reliance on China by expanding production in Vietnam, India, and Mexico, China still accounts for about 75% of its total manufacturing capacity, the report notes.

As mentioned by the report, its Zhengzhou facility remains the world’s largest iPhone production site, while the Shenzhen plant serves as a key hub for iPhone R&D and pilot production. The Chengdu plant focuses on tablets and notebook manufacturing.

Compal

While China accounted for 70% of its production last year, Compal is accelerating its global expansion amid geopolitical shifts. This year, it aims to reduce the share to 50%, though China remains its main manufacturing base, with its largest facility located in Kunshan, as the report indicates.

Quanta

Quanta’s notebook production is currently centered at its Chongqing and Shanghai facilities in China.

Meanwhile, as noted by Central News Agency, Quanta’s new plant in Jülich, North Rhine-Westphalia, marks Taiwan’s largest investment in Germany in 2024. The facility will focus on autonomous driving applications and produce high-precision electronic equipment for the German automotive industry.

Wistron

Wistron’s China production share has fallen to under 50% as the company expands its global footprint. Its China-based capacity includes notebooks and LCD modules, with key notebook manufacturing sites in Chongqing and Chengdu.

Inventec

Inventec has been steadily increasing its non-China production share in recent years and is building a new plant in Thailand, which is expected to match the capacity of its Chongqing facility, the report highlights. Its main sites in China—Shanghai, Chongqing, and Nanjing—produce servers, automotive electronics, and notebooks.

Pegatron

Pegatron’s China operations accounted for about 70% of its total production capacity last year. According to the report, its Suzhou plant primarily manufactures automotive products to serve key EV client Tesla, while also assembling some consumer electronics. The Chongqing facility focuses on notebooks and other PC products, while the Shanghai plant mainly produces smartphones.

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(Photo credit: Foxconn)