Reports indicate that Foxconn is shifting production of some of its iPad and MacBook devices away from China to Vietnam at Apple’s request. With new Apple M1 products hitting the shelves, it seems likely that the ongoing US-China trade war is behind the move.
Despite US President Donald Trump’s election defeat earlier this month, his administration continues to encourage US firms to shift production away from China. Other manufacturers have begun moving assembly lines to other markets, including Vietnam, India, and Mexico.
Citing an individual with knowledge of the Foxconn move, Reuters said that the production lines would be based in Vietnam’s Bac Giang province and come online in the first half of 2021. They are expected to produce both iPad tablets and MacBook devices.
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Get a shift on
In related news, Foxconn also announced a $270 million investment that will be used to create a new subsidiary, called FuKang Technology. It is believed that the investment will help with the transfer of Apple production lines to Vietnam. In addition to Apple products, the Vietnam plant will also make television sets and computer equipment, such as keyboards.
Before the trade spat between the US and China erupted, Foxconn and Apple had a straightforward partnership, with all iPads made in China before being shipped overseas. Now, such a partnership is fraught with political danger – Foxconn also has plans to invest $1 billion in expanding an iPhone assembly plant in India, as requested by Apple.
The Apple news is not the only recent Foxconn development involving a US technology giant. Earlier this month, it was revealed that Foxconn had won a contract to manufacture key Google server components at its Wisconsin plant.
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Via Reuters