10 Nov 2020 -
 General

Electronics supply chains sticking with China for now, says Forbes

made in china

Will Trump’s departure signal an end to the tariff wars and the pressure on the U.S. to de-couple and re-shore previously lost manufacturing capabilities? Too soon to call, but Forbes writes here that electronics supply chains are sticking with China – at least for now.

“For multiple years, electronics companies that sell into the U.S. market have faced pressure from tariffs to move their supply chains out of China,” they write, continuing, “Earlier this year, the opinion was clear: the combination of tariffs and Covid would push manufacturing out of China.”

But according to Forbe’s analysis of software provider, Instrumental, who support manufacturing lines for top electronics companies, the “major trends remained the same” i.e. “Large electronics brands with complex products generally built in China in 2020 and plan to do so again in 2021; medium electronics brands split roughly in half between building in China and building in Taiwan, with a slight trend towards Taiwan in the 2021 plan.”

However, they did note that “small electronics companies working on first or low volumes products are building in the U.S. and plan to do so in 2021 as well”.

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