Foxconn Plans to Ramp Up China Expansion Despite Covid Upheaval
Hon Hai Precision Industry Co. intends to keep expanding capacity in China despite persistent disruption from some of the world’s harshest Covid control measures.
(Bloomberg) -- Hon Hai Precision Industry Co. intends to keep expanding capacity in China despite persistent disruption from some of the world’s harshest Covid control measures.
The company known as Foxconn intends to raise capital spending in 2023 and the biggest portion of that expenditure will go toward its already giant production base in China, Chairman Young Liu told analysts on Thursday.
Foxconn, maker of most of the world’s iPhones, earlier warned consumer electronics revenue will fall this quarter as it grapples with a Covid outbreak that walled off its main production base.
Apple Inc.’s most important partner reported earnings that missed estimates and said revenue growth will be flat for the current three-month period. Hon Hai is now trying to resume full production after a coronavirus flareup in October triggered a lockdown around its biggest factory in Zhengzhou, severely curtailing the flow of goods and people it needs to sustain iPhone assembly.
“The Covid outbreak in Zhengzhou is prompting the industry to consider diversifying risks,” Liu said. But the experience meant Foxconn’s plant has the most expertise in dealing with a local flare-up, he added.
Read more: IPhone Maker Warns Devices Sales to Fall After China Lockdown
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