The move will mainly affect the production of some Apple iPad and MacBook models, with these production chains leaving China for Vietnam. The decision was announced this Friday by Foxconn exclusively to Reuters.
In order to minimize the risk of worsening tensions between China and the United States of America, the company responsible for the production of Apple products will move part of its infrastructure, according to a person in charge of the manufacturer.
The latest actions of the Trump administration
This Foxconn decision comes in the wake of the Trump administration’s strong incentive for US companies to leave China, denying the communist nation the profits from producing much of consumer technology products.
We recall that during the current administration, the White House tightened import tariffs on Chinese products, in addition to placing severe restrictions on the supply of components that use American technology to Chinese companies.
Sustaining the risk to the national security of the United States, the executive harassed Chinese companies. Likewise, he urged the main allies of the American power to follow his example, being largely successful.
Foxconn to shift part of Apple production to Vietnam
In the face of this tension between the United States and China, Foxconn is the latest manufacturer to move at least part of its production to another nation. Preferred countries include Mexico, India and, in this case, Vietnam.
According to the aforementioned source, Foxconn is already building new production lines in Vietnam, aiming to accommodate the production of the Apple iPad, the Cupertino giant’s tablet and its MacBook. The facilities will start operating in the first half of 2021.
At the same time, production in China will be reduced and, in some sectors, cut. On the other hand, the source who preferred to remain anonymous, did not specify any metrics that would make it possible to assess the impact of this change.
The change came at Apple’s request
The Cupertino giant will want to diversify production, avoiding a possible increase in tensions between China and the United States of America. Thus, if this happens, the production of Apple products will not be affected as much.
Also according to the source in question, the measure is mainly preventive. In other words, Apple wants to ensure that its iPhone, iPad and other products continue to be manufactured, regardless of political fabric.
Also at Apple’s request, Foxconn decided not to go into the topic further, nor reveal data that could compromise its client.
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