Foxconn said to shift some Apple production to Vietnam to minimise China risk
- The world’s largest electronics contract manufacturer is moving some iPad and MacBook assembly to Vietnam, as Apple diversifies production
- Foxconn’s new plant in Vietnam is expected to come online in the first half of 2021
The development comes as the outgoing administration of US President Donald Trump encourages American firms to shift manufacturing out of China. During Trump’s tenure, the US has targeted made-in-China electronics for higher import tariffs, and restricted supplies of components produced using US technology to Chinese firms it deems as a national security risk.
Taiwanese manufacturers, wary of being caught up in the tit-for-tat trade war, have moved or are considering moving some manufacturing from China to countries such as Vietnam, Mexico and India.
Foxconn, the world’s largest electronics contract manufacturer, is building assembly lines for Apple’s iPad tablet and MacBook laptop at its plant in Vietnam’s northeastern Bac Giang province, to come online in the first half of next year, the person said, declining to be identified as the plan was private.
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The lines in Vietnam will also take some production from China, the person said, without elaborating how much production would shift.
“The move was requested by Apple,” the person said. “It wants to diversify production, following the trade war.”
Foxconn said in statement: “As a matter of company policy, and for reasons of commercial sensitivity, we do not comment on any aspect of our work for any customer or their products.”
Apple did not immediately respond to a request for comment.
The contract manufacturer also plans to make television sets at the Vietnam plant for clients including Japan’s Sony Corp, with the start of such production scheduled later this year to early 2021, the person said. Sony declined to comment.
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The factory will also make other electronic products such as computer keyboards, the person said.
All iPads are assembled in China and so Foxconn’s move would mark the first time that the iPad has been made outside the country, according to Taipei-based research group TrendForce.
Foxconn already plans to spend up to US$1 billion expanding an iPhone assembly plant in India as “strongly requested” by Apple to diversify production beyond China, people with direct knowledge of the matter told Reuters in July.
Foxconn and peers such as Pegatron Corp are also considering building plants in Mexico, people with knowledge of the matter said, as Washington promotes near-shore production.
Other iPad assemblers include Taiwan’s Compal Electronics and China’s BYD Electronic International.
