Apple Inc’s key manufacturing partner Foxconn Technology Group has appointed a new chief for its iPhone assembly business in China, Bloomberg reported. According to the report, Michael Chiang was first identified in his new role at Taiwan-based Foxconn’s annual year-end party on Sunday, succeeding long-time leader Wang Charng-yang as head of the division responsible for iPhone assembly.


Chiang was recently promoted to chief of the business group as Wang steps back to focus on a role on the board, sources told the news agency. The appointment is part of efforts by Chairman Young Liu of Foxconn’s flagship unit Hon Hai Precision Industry Co. to elevate younger executives to maintain the company’s supply chain leadership in the face of growing competition from Chinese contenders.


Foxconn may also face new rivals in India as Apple seeks to further diversify its production footprint following pandemic-related supply snarls and draconian curbs that wrought havoc on device output in China.


Wang, who was appointed to Hon Hai’s board in the summer of 2022, remains a director and his departure from the iPhone operations role isn’t connected to the Covid-related output disruptions Foxconn suffered last year, the people said.


Chiang has a master’s degree in human resources development from California’s Claremont Graduate University and he joined Foxconn in 1999, according to a wide-ranging interview he did with an insurance broker company that was posted online in June 2021.


When Foxconn encountered unprecedented worker unrest at its main iPhone campus in the central Chinese city of Zhengzhou late last year, Chiang played a pivotal role in communicating with the local government and making sure Apple’s demands would be satisfied, one of the people said.


The appointment highlights Foxconn’s efforts in recent years to foster a younger cohort of executives to help the company navigate prolonged tensions between Washington and Beijing, diversify its manufacturing bases outside of China, and fend off Chinese challengers, including Luxshare Precision Industry Co.


Meanwhile, Foxconn has brought the world’s largest iPhone plant to about 90 per cent of anticipated peak capacity, as reported by news agency Bloomberg. This suggests Foxconn has secured enough workers despite a Covid resurgence and recent staff upheaval.


Thousands of workers fled or staged protests against extreme Covid curbs in November — a movement that reverberated across the country. Foxconn ended most of those restrictions last month and ramped up incentives for both new and existing employees.