As trade frictions continued, manufacturers decided to shift production lines in order to spread risk, Reuters reported.
Just two days ago (November 25), Foxconn also announced a $270 million investment to set up a new company in Vietnam to expand production. The companys LCD production line in northern Vietnam has been started. Foxconn hopes to take advantage of the tariff with RCEP coming into effect in the near future.
The Mac and iPad are scheduled to go into production in the first half of next year. However, it is not clear how much capacity has been transferred from China to Vietnam, the source said.
According to the above report, the new production base will be located in Beijiang Province in Northeast Vietnam. At the Beijiang plant, Foxconn is expected to assemble Sony TVs and keyboards by the end of this year and early next year, in addition to producing some Mac and iPad products that have been removed from China.
The report pointed out that due to trade frictions, customers asked to disperse production lines, and Vietnam has become the preferred place for many enterprises to settle down outside China. In particular, Sino US relations have become increasingly tense this year, including Foxconn and other agents, which must provide two sets of supply chain services for the G2 (China and the United States) markets.
Brand factories require decentralization. According to the source, the supply chain is about to move.
In August this year, Liu Yangwei, chairman of Hon Hai, said at an investor briefing that the development of global G2 has become a trend. How to provide two sets of supply chains to serve these two markets has become a world trend, which is what the company has been doing all along.
Up to now, in Foxconns OEM Apple products, except for some iPhone capacity in India, Mac computer, iPad, AppleWatch, AirPod and other production lines are located in Chinese mainland.
Photo source: Taiwan Economic Daily
Source: observer.com editor in charge: Yang Bin_ NF4368