Is coronavirus the final shove needed to force tech manufacturers out of mainland China?
Bloomberg is reporting that several of Apple’s manufacturing partners, including Wistron Corp, Hon Hai (aka Foxconn), Inventec Corp. and Pegatron Corp, are discussing how they can refocus production away from China, with Wistron claiming half its capacity could reside outside China within a year.
The report says that Taipei-listed Wistron is targeting India — where it’s already making some iPhones — along with Vietnam and Mexico, setting aside $1 billion to fund the expansion this year and next. Wistron Corp Chairman, Simon Lin, says the move is supported by their customers and it’s “something we have to do”.
Taiwanese manufacturer, Pegatron, is reported to be looking closer to home by adding further capacity in northern Taiwan as well as opening manufacturing operations in Vietnam in 2021. Inventec says it’s preparing to establish a unit in Vietnam.
Hon Hai (Foxconn) began producing iPhones in India last year. “Trade, the virus, all these things will make the world very different in the next decade,” said Alex Yang, Hon Hai’s investors relations chief.
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