Foxconn is running some iPad and MacBook assemblies from China to Vietnam at the request of Apple Inc., said a person with knowledge of the plan, as the American firm diversifies production to minimize the impact of a Sino-American trade war is. The development comes as the outgoing administration of US President Donald Trump encourages US firms to move production from China. During Trump’s tenure, the United States has targeted Made-in-China Electronics for higher import duties, and Chinese companies have been targeted by the U.S. This restricted supply of components produced using technology reduces a national security risk.
Taiwanese manufacturers, wary of being caught in a tight-for-tat trade war, have moved or are considering moving some production from China to countries such as Vietnam, Mexico and India. Foxconn is building assembly lines for Apple’s iPad tablets and MacBook laptops at its plant in northeastern Beck Giang province in Vietnam, to come online in the first half of 2021, the man identified as the plan said Was private.
Production from China will take some lines, the person said, without explaining how much production will shift. The person said, “Apple requested the move.” “This trade seeks to diversify production after the war.”
Foxconn said in the statement: “As per company policy, and for reasons of commercial sensitivity, we do not comment on any aspect of our work for any customers or their products”. Apple did not immediately respond to a request for comment.
Taiwan’s Foxconn, formally announced by Honorable High Precision Industry Co Ltd, on Tuesday announced an investment of $ 270 million to set up a new subsidiary called Fuang Technology Co Ltd – a person who has been expanding to Vietnam. Was intended to support.
The contract manufacturer also plans to make television sets at the Vietnam plant for customers including Sony Corp. of Japan, with the start of such production by the end of 2021 in early 2020, the person said. Sony declined to comment. The person said the factory would also make other electronic products such as computer keyboards.
According to the Taipei-based research group Trendforce, all iPads are assembled in China and so Foxconn’s move will mark the first time that the iPad is made outside of China. Foxconn is already planning to spend $ 1 billion to expand the iPhone assembly plant by Apple to diversify production outside of China in India, people directly aware of the matter said in July. I told Reuters.
It and peers like Pegatron Corp are also considering building plants in Mexico, people with information about the case said, as Washington promotes near-term production. In August, Foxconn chairman Liu Young-way gave investors China-U.S. Se had said that the trade war divided the world into two parts, adding that their aim was to provide “two sets of supply chains”.
Other iPad assemblers include Complex Electronics Inc. of Taiwan and BYD Electronic International Co. Ltd. of China.