Trump's tariff plan to have limited impact on Hon Hai: Chairman

Taipei, Feb. 12 (CNA) U.S. President Donald Trump's recent introduction of trade tariffs and potential future adjustments are unlikely to have a direct impact on Hon Hai Precision Industry Co., its chairman Young Liu (劉揚偉) said Wednesday.

In response to Trump's manufacturing initiative, Liu mentioned that Hon Hai is considering establishing new sites in various locations across the U.S. in collaboration with its partners.

While Trump's tariff policy is aimed at reshoring manufacturing to the U.S., any changes would have a small effect on the manufacturing giant, regardless of whether production is based in Taiwan or the U.S., Liu said while attending a company event.

However, Liu also acknowledged that tariff hikes could lead to a global market contraction.

In light of this, the company will adjust its high-end artificial intelligence (AI) server production capacity in Taiwan, the U.S., Mexico, and Vietnam as needed, Liu said.

Liu said that on the back of its AI server business, Hon Hai said it is on track to post NT$7 trillion (US$210 billion) in revenue this year, with the potential to approach NT$8 trillion depending on market developments.