Foxconn: Orders change due to US and China trade battle

Foxconn’s parent company, Hon Hai, has said customer orders are changing due to the recent trade battle between the US and China. The company does not say which manufacturers are changing orders.

The impact on Foxconn is small, the company said in a statement on the site of the Taiwanese exchange. Hon Hai keeps the statement vague, claiming that “recent developments” have prompted customers to change the orders. In addition, the company has set up a committee to monitor the trade battle between the US and China.

Foxconn has some major customers, including Huawei. Foxconn was hiring tens of thousands of people at a factory in Zhengzhou to assemble Huawei smartphones. Apple is another big customer and smartphone sales have been disappointing in the past six months.

It is rare for Hon Hai to release a statement about orders it is getting. It appears to be a response to the recent development that the US has placed Huawei on the Entity List of companies with whom US companies are no longer allowed to trade. As a result, many companies have severed ties with Huawei. The US government has given companies 90 days to complete ongoing projects.