Reuters news agency said that the world's largest electronic and computer component manufacturer Foxconn, specializing in manufacturing products for Apple, is moving part of its tablet (Ipad) and laptop (MacBook) production line from China to Vietnam at Apple's request. This shows the clear message that the US technology giant wants to diversify production to reduce the impact of the US-China trade war.
This move comes as the Trump administration has always encouraged US companies to move production out of China. The US has imposed a tariff barrier on electronic devices manufactured in China, while limiting the supply of components using US technology to Chinese companies that it believes pose national security risks.
Foxconn is building a series of Apple's iPad and MacBook laptop assembly lines in Bac Giang. This plant is expected to be operational in the first half of 2021.
According to Reuteurs, part of Foxconn's production lines in China will be transferred to Vietnam, but the exact figures were not disclosed.
A Foxconn representative said: "Due to the company's regulations and trade sensitivity, we have not made any comments on customers' business strategies."
Apple also did not comment on any information related to the above information.
Bloomberg reported that Apple's partners have increased iPhone manufacturing capacity in India and assembly companies AirPods have added some assembly lines in Vietnam.
Earlier this week, a source close to Foxconn's operations said the company had announced a new investment of 270 million USD in Vietnam.
According to experts, moving some iPad and Macbook production lines out of China will help diversify production activities and limit the impacts of US-China trade tensions.
Many companies such as Foxconn are also looking to relocate production out of China and to some countries such as Mexico, India, etc.
In 2021, the third generation of AirPod is also expected to be produced in Vietnam.
Taiwanese company Foxconn announced a 270 million USD investment to establish a new subsidiary called FuKang Technology, a move to expand production in Vietnam.
The manufacturer under this contract also plans to produce TVs at the Bac Giang factory to meet the requirements of Sony of Japan. Television production is expected to begin in late 2020 or at the latest in early 2021. However, Sony representative declined to comment on the above information.
In addition, the factory in Bac Giang will also produce other electronic products such as computer keyboards.
According to research from TrendForce, all Apple iPads are currently made in China. Therefore, Foxconn's move to relocate the chain marks the first step for iPad products to decline outside of China.
Over the past 4 years, the US has increased tariffs on Chinese-made electronics as well as limited supply of components, prioritizing the use of US technology instead of China due to concerns about national security.
