Apple Requests Relocation to Foxconn
Production Scheduled from First Half of Next Year
iPhone Production Volume Also Expected to Increase
Tim Cook, Apple CEO, visiting Foxconn's Zhengzhou factory in October 2014
[Asia Economy Reporter Han Jinju] Apple is relocating some of its product production lines, including MacBook and iPad, from China to Vietnam.
According to IT media MacRumors on the 26th (local time), Foxconn is establishing production lines for iPads and MacBook laptops at its factory in the Bac Giang region of Vietnam, aiming to start operations in the first half of next year.
As the trade dispute between the United States and China continues, Apple reportedly requested Foxconn to relocate in order to minimize the impact. The Trump administration repeatedly announced sanctions targeting Chinese-made products, and the Chinese government imposed retaliatory tariffs on companies operating in China, putting Apple under threat related to tariffs.
Apple has been pursuing a strategy to diversify its supply chain and has been producing some AirPods and AirPods Pro in Vietnam since early this year. It is also working on increasing iPhone production volume in Vietnam. Samsung Electronics has been manufacturing half of its smartphones in Vietnam, and with Apple joining in, Vietnam is emerging as a manufacturing and assembly hub for major manufacturers.
Apple's major manufacturing partners, including Foxconn, Pegatron, and Compal Electronics, are reducing their dependence on China and increasing production volume in Vietnam. Pegatron is also considering establishing a factory in Mexico.
According to Nikkei Asian Review and others, Foxconn plans to invest $270 million in Vietnam to expand production capacity. Foxconn has relocated more than 30% of its production lines outside of China.
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