Apple Productions Are Shifted By Foxconn To Vietnam For Minimizing The Risk Of China
Some of the MacBook and iPad assembly are moved by Foxconn from China to Vietnam as it has been requested by Apple Inc. The news came out according to a source who has got thorough knowledge about the plan. The production is diversified by the US firm so that the impact of the Sino-US trade war is minimized.
The development came as Donald Trump, the outgoing US President wants to shift the production out of China as the US firms have agreed to do so. During the tenure of Trump, made-in-China electronics are targeted by the United States for higher tariffs on imports. Another reason being, there have been restricted supplies of various products that are produced with the use of US technology as it also incurs the risk of national security.
The manufacturers from Taiwan were pretty much wary of being caught up in the ongoing trade war. They are also moving some of the productions that are taking place in China to other manufacturing hubs in countries like India, Mexico, and Vietnam.
The assembly line for the Macbook laptop and the iPad tablet of Apple is built by Foxconn at its plant in Bac Giang province in northeastern Vietnam. They are going to come online in 2021 in the first half and declined to tell the identity as it is a private plan.
The assembly line is going to take some Chinese production but did not elaborate on the quantity of production.
The person also said that this move has been requested by Apple and the production has to be diversified as it is followed by the trade war.
In a statement given to major media outlets, it has been said that because of company policy and commercial sensitivity they are not making any comment on the work aspect for any of their products and customers.
The Foxconn of Taiwan, which is previously known as Hon Hai Precision Industry Co. Ltd. Announced on Tuesday, an investment of $270 million as a new subsidiary is set up called the FuKang Technolgy Co. Ltd. Which is a move aimed at supporting the expansion of Vietnam according to the person.
Plans about making TV sets are also made by the contract manufacturer at the Vietnam plant that includes the Sony Corp. of Japan as the start of such a production is slated to start from late 2020 to the beginning of 2021. No comments were made by Sony on this matter.
Electronic products like keyboards and computers will also be made by the factory.
TrendForce, a research group based out of Taipei has said that all of the iPads get assembled in China, and as the move by Foxconn is going to mark the beginning of an era when he iPads are going to be manufactured outside China. Plans are already in place as Foxconn is going to invest another $ 1 billion in India for iPhone expansion.
I am Jessica Gonzalez and i have over 16 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets. She is an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.
