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Foxconn to shift some Apple production to Vietnam to decrease China risk

Foxconn is moving some MacBook and iPad assembly to Vietnam from China at the request of Apple, Reuters reports, citing “a person with knowledge of the plan,” as the U.S. firm diversifies production to mitigate the impact of a U.S.-China trade war.

Yimou Lee for Reuters:

Foxconn 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 2021, the person said, declining to be identified as the plan was private…

Taiwan’s Foxconn, formally Hon Hai Precision Industry Co Ltd, on Tuesday announced a $270 million investment to set up a new subsidiary called FuKang Technology Co Ltd – a move the person said was aimed at supporting the Vietnam expansion…

According to Taipei-based research group TrendForce, all iPads are assembled in China and so Foxconn’s move would mark the first time that the iPad has been made outside China.

Foxconn already plans to spend up to $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.

MacDailyNews Take: We love it when a plan (finally) comes together!

The move to diversify production worldwide in order to mitigate risk should have begun more urgently earlier. Apple needs to continue and step up their work to liberate themselves from communist China’s threats. — MacDailyNews, October 9, 2019

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