Apple Shifts MacBook & iPad Manufacturing to Vietnam from China
Tariffs on electronics made in China are a nightmare for businesses like Apple. Although the Big Tech giant sells many of its devices in the U.S., it is forced to pay taxes and fees for importing its gadgets.
Many companies are opening up to the idea of moving their production lines out of China in favor of countries with fewer trade tensions. Prime locations include Vietnam, Mexico, and India. Of course, some firms are also taking advantage of incentives that are offered for bringing manufacturing back to the U.S.
In the midst of U.S.-China trade tensions, Apple is making a clear statement that it does not want to be involved. Reuters cites a person “with knowledge of the plan,” who says, “The move was requested by Apple. It wants to diversity production following the trade war.”
Fortunately, Foxconn is already building assembly plants for both the iPad and MacBook in Vietnam. The plant is located in the northeastern province of Bac Giang. Foxconn estimates that the manufacturing facility will be ready to go online in the first half of 2021. Although COVID-19 could still alter those plans, the timeline appears to be fairly established.
In a statement, Foxconn said, “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.”