Apple Corporation’s iPhone can be safe from the effects of the intensifying dispute between Donald Trump and China.

Hon Hai, also known as Foxconn, assures that their production of iPhones won’t be affected by the ongoing US-China trade conflict. Foxconn’s senior executive says that if the situation calls for it, there will be sufficient production ability outside of China to meet the demands of Apple. 

During an investor’s meeting held in Taipei, Young Liu, chief of Hon Hai’s semiconductor division, assured that twenty-five percent of iPhone production is done outside China, and if the trade war between the US and China turns out for the worst, Hon Hai will still be able to assist Apple in responding to the needs of its market.

According to Liu, the company is already looking to invest in India, where a lot of previous iPhone models have already been made at Bangalore plant. He reiterated that Hon Hai has the capacity to provide the needs of Apple’s market.

Most of the iPhones and iPads produced by Apple come from China, and the country is the biggest international market of Apple as well.

The fact that Apple’s production takes place in US’ rival country has become a chief concern for investors, especially so that the current US administration is escalating its threats to implement a new tariff to Beijing affecting about $300bn worth of goods from China.

Liu clarified to the investors that Apple had not instructed Hon Hai to relocate the production to another country, but he assured that Hon Hai can readily transfer the production lines anywhere as per customer’s need.

However, the consequences of the trade war on the tech assemblers and chip manufacturers are already being felt.

At the beginning of the month, the US semiconductor stocks dropped significantly as a result of the Trump’s administration’s decision to ban Huawei, a large Chinese manufacturing company suspected of evading US sanctions against Iran and acting as a spy for Beijing.