According to the U.S. technology media outlet, The Information, Apple is striving to increase its iPhone production in India to reduce reliance on China amid escalating tariff pressures, although facing obstacles from the Chinese side. The supply chain firm Hon Hai has faced delays or rejections in applications to import Chinese-made equipment from India by Chinese authorities.

Financial expert Huang Shih-tsung pointed out in the online program Catch the Big Money Tide that while institutions estimate that China's share in Hon Hai's global production capacity remains at 70%, down from 90%, India is becoming increasingly important. Huang noted that Hon Hai has been working on globalization, shifting production capacity out of China to locations such as India, Vietnam, and the U.S., and is even discussing a reboot in Brazil.

He mentioned that Hon Hai's global layout has been underway for 4 to 5 years, citing comments from Chairman Liu Yangwei, who indicated that while tariffs have an impact, the degree is relatively light. Although iPhones have been exempted from equal tariffs by President Trump, Huang pointed out that importing from China to the U.S. still incurs a 20% fentanyl tariff, making the shift to India necessary.

According to Huang, the iPhone made in India is likely to become a key product exported to the U.S., aligning Hon Hai's strategy with Apple's strategy. He emphasized that compared to other Apple suppliers in India, such as Pegatron and Wistron, who have ceased operations, Hon Hai continues to expand, indicating its superior management capabilities.

He noted that while servers are currently exempt from equal tariffs, they may face taxes in the future, making production capacities in India and Mexico beneficial, as Hon Hai has laid out in both locations. Overall, excluding tariff effects, Hon Hai's performance and EPS should be positive.

Addressing whether Chinese factors are causing a decline in Hon Hai's stock price, Huang explained that although 70% of Hon Hai's production capacity is in China and tariffs imposed by China could affect future sales to Apple, the company's fundamentals suggest that with a share price over 130 and net asset value exceeding 100, it presents an attractive opportunity for long-term investors.