Wingtech, Increased Possibility of Apple MacBook Production
Eying Expansion into Semiconductor and Camera Module Markets
[Asia Economy Reporter Lee Ji-eun] Wingtech, one of China’s four major smartphone original design manufacturers (ODM), has begun constructing a large-scale computer factory, raising the possibility that Apple’s MacBooks will be produced there in the future. Until now, Taiwanese companies have been responsible for manufacturing Apple products, leading to analyses that China is threatening Taiwan’s dominance in the contract manufacturing sector.
On the 26th, the Nihon Keizai Shimbun reported that Wingtech is building a large-scale computer factory covering 427,000 square meters in Kunming City, Yunnan Province, China. This is equivalent to the size of 80 soccer fields. Wingtech has invested 3 billion yuan (584.9 billion KRW) solely in the construction of the factory.
The Nihon Keizai Shimbun cited local government officials, stating that there is a high possibility that Apple’s MacBooks will be produced at this site. MacBooks are considered among the most difficult electronic devices to assemble, and production has been handled by two companies: Taiwan’s Quanta Computer, the world’s largest computer ODM, and Hon Hai Precision Industry (Foxconn).
The Nihon Keizai Shimbun noted, “Although Wingtech has been recognized as one of China’s four major ODM companies, it still lacks global recognition,” adding that the industry’s attention is focused on the news that they may take on MacBook contract manufacturing.
Currently, Chinese manufacturing companies are rapidly growing and penetrating the supply chains of global corporations. Wingtech is contract manufacturing Samsung Electronics’ smartphones and Lenovo products, and less than a year after acquiring the component supplier O-Film Technology, it has succeeded in supplying camera modules to Apple. The Nihon Keizai Shimbun explained that Wingtech’s goal is to expand beyond smartphone assembly into more profitable sectors such as semiconductors and camera modules. Wingtech is currently planning to build an additional semiconductor factory in Kunming City.
However, due to the US-China conflict, countries worldwide are reducing their supply chain dependence on China, making it uncertain whether Chinese manufacturing companies’ growth can continue. The Nihon Keizai Shimbun pointed out, “Recently, the international community has seen the spread of so-called ‘friendshoring,’ where supply chains are placed with allied countries sharing the same values,” adding, “Moreover, the semiconductor sector is a primary target of US sanctions against China, so Wingtech’s new business ventures could instead become a managerial headwind.”
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