Because Foxconn will be assembling Apple’s iPad and MacBook outside of China
Apple may move Foxconn's iPad and MacBook production from China to Vietnam. All the fault of the Sino-US trade war
Soon iPad and MacBook no longer made in China but in Vietnam at the request of Apple.
According to Reuters Foxconn, the leading iPhone assembler, is moving iPad and MacBook assembly lines to Vietnam from China at Apple's request. In fact, the Cupertino giant intends to diversify production to minimize the impact of a Sino-US trade war.
Already last February, due to the uncertainty of the coronavirus emergency in China, Foxconn was considering moving its production to India.
But the recent development comes as the outgoing Trump administration in the US encourages US companies to move manufacturing out of China.
This is the first time for the iPad to be produced outside of China.
All the details.
FOXCONN ASSEMBLY LINES IN VIETNAM
Taiwanese Foxconn, formally Hon Hai Precision Industry Co Ltd, is planning assembly lines for Apple's iPad and MacBook at its plant in the northeastern province of Bac Giang, Vietnam. This was reported by an anonymous source to Reuters.
The assembly lines are expected to start production in the first half of next year.
"Regarding company policy and for reasons of commercial sensitivity, we do not comment on any aspect of our work for any customer or its products," Foxconn said in a statement.
FAULT OF THE SINO-US COMMERCIAL WAR
The giant of the bitten apple led by Tim Cook wants to diversify its supply chain due to the ongoing trade disputes between the United States and China.
The United States, under the presidency of Donald Trump, has targeted Chinese companies by imposing various trade restrictions. Without forgetting the banning of some companies (such as Huawei) classifying them as a national security risk.
APPLE MOVES IPAD AND MACBOOK FROM CHINA
The Reuters report does not indicate which iPad or Mac models Foxconn will assemble in Vietnam, nor what percentage of Apple's total production will move out of China.
Apple did not immediately respond to a request for comment.
According to Taipei-based research group TrendForce, all iPads are assembled in China and thus Foxconn's move will mark the first time the iPad has been manufactured outside of China.
FOXCONN PRODUCTION IN VIETNAM
Nikkei reported earlier this week that Foxconn is planning a $ 270 million investment in Vietnam to expand its manufacturing capacity. The Taiwanese company is said to be moving more than 30% of its production lines out of China.
Not forgetting that Apple began manufacturing AirPods Pro units in Vietnam earlier this year. The move marked the first time that Apple's popular wireless earbuds are no longer made in China in an effort to reduce dependence on China.
NOT ONLY FOR THE APPLE CUSTOMER
But the migration to Vietnam is not just about the Apple customer. Foxconn also plans to make televisions at the Vietnam facility for other customers including Japan's Sony Corp, with production commencing in late 2020 and early 2021, according to Reuters . Sony declined to comment.
IPHONES ASSEMBLED IN INDIA
Foxconn already plans to spend up to $ 1 billion to expand an iPhone assembly plant in India as "strongly requested" by Apple to diversify manufacturing beyond China. He reported last July always Reuters.
Reuters also points out that Foxconn, but also the other Apple supplier Pegatron, are also considering the construction of plants in Mexico, since Washington promotes near-shoring production. Earlier this month, Apple blocked Pegatron for labor abuse in China.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/perche-foxconn-assemblera-ipad-e-macbook-di-apple-fuori-dalla-cina/ on Fri, 27 Nov 2020 11:33:12 +0000.