SMM: at the request of Apple, Hon Hai (Foxconn) plans to relocate some of Apple's Mac computers and iPad production lines from China to Vietnam to disperse the production lines and minimize the impact of trade frictions between China and the United States, according to foreign media citing sources familiar with the matter. This will be the first time Hon Hai has produced iPad outside China.
The move comes as US President Donald Trump encourages US companies to shift production out of mainland China. After Trump took office, the United States raised import tariffs on electronics made in mainland China and restricted the supply of semiconductor components made using American technology and equipment to companies such as Huawei.
IPad production line moved out of China for the first time
Foxconn is building an assembly line for Apple's iPad tablets and MacBook laptops at its plant in northeastern Vietnam's Pak Jiang province, which will start production in the first half of 2021, according to anonymous sources.
'The production lines will take away some of the production from China, but he didn't specify how much production will be transferred, 'the person familiar with the matter said.
"this is a request made by Apple," the person said. After the trade war, Apple wants to diversify its production. "
Foxconn said in a statement: "for reasons of company policy and business sensitivity, we do not comment on any aspect of what we do for any customer or its products."
On Nov. 24, Hon Hai announced that it would set up a new company, FuKang Technology Company limited, at a cost of $270 million by reinvesting in its subsidiaries. Sources said that this is to lay out Vietnam and expand the plant near the original Beijiang plant.
Foxconn also plans to produce televisions at its Vietnam plant for customers, including Japan's Sony, and is expected to start production between the end of 2020 and early 2021, according to the person familiar with the matter. In addition, the factory will also produce computer keyboards and other electronic products.
Prior to that, all of Apple's iPad was assembled in China, according to the research institute.
The production line is being transferred.
After the escalating trade friction between China and the United States, Vietnam has become the preferred manufacturing place for many companies outside China, based on customer requirements for scattered production lines in China. In addition, India and Mexico are also the chosen targets for many enterprises to transfer their production lines.
Liu Yangwei, chairman of Hon Hai, said at the investor briefing in August that the development of the global G2 (China and the United States) has become a trend, and how to provide two sets of supply chains to serve these two major markets is a world trend, which is what Hon Hai has been doing.
In July, people familiar with the matter revealed that Foxconn had planned to invest $1 billion to expand its iPhone assembly plant in India to meet Apple's "strong demand" to diversify its production outside China. Foxconn, Pegatron and others are also considering building plants in Mexico, according to people familiar with the matter.
In addition to Foxconn, other iPad assemblers include Compal Electronics of Taiwan and BYD Electronics of China.
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