Apple Looking To Move iPad & MacBook Manufacturing From China To Vietnam
Apple is looking to move some of its manufacturing labor for the iPad and MacBook from China to Vietnam, according to a report from Reuters, who claims the company has asked Foxconn to fashion a transition.
Production is supposed to kick off in Foxconn's Bac Giang province next year but it's understood that Apple wants to diversify its supply chain as a result of the ongoing dispute between the U.S and China over trade.
The publication didn't specify as to the models of the aforementioned devices the company wants to be made in Vietnam, nor were they able to provide details over the proportion of production it wants out of China.
"The development comes as the outgoing administration of U.S. President Donald Trump encourages U.S. firms to shift production out of China. During Trump’s tenure, the United States has targeted made-in-China electronics for higher import tariffs, and restricted supplies of components produced using U.S. technology to Chinese firms it deems a national security risk. Taiwanese manufacturers, wary of being caught up in the tit-for-tat trade war, have moved or are considering moving some production from China to countries such as Vietnam, Mexico and India."
“The move was requested by Apple,” a source with knowledge on the matter told Reuters. “It wants to diversify production following the trade war.”
“As a matter of company policy, and for reasons of commercial sensitivity, we do not comment on any aspect of our work for any customer or their products," Foxconn said.
Should the move occur, it wouldn't mark the first time Apple products were produced in Vietnam. Apple started making the AirPods Pro there earlier this year. India has also operated as a hub for the assembly of various iPhone models for some time now. The latter relationship was formed before the trade war between the U.S and China but does help Apple meet local import regulations.
According to Nikkei, Foxconn is planning to invest $270 million in Vietnam to expand manufacturing capacity at locations within the country as it's poised to move over 30 percent of its production lines outside China.
Taiwan's Compal Electronics and China's BYD Electronic International Co Ltd are also among companies that assemble iPads in Asia.
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