Apple has requested that Foxconn move some of its iPad and MacBook production from China to Vietnam. The sudden shift is a part of Apple’s plan to minimize the potential impact of the China and US trade war.
As tension begins to mount between the US and China, Apple is looking to diversify its production to avoid higher import tariffs put in place by the Trump administration. Currently, the US government is putting additional pressure on electronics made in China. According to Reuters, Apple had made a formal request that would see Foxconn transferring some of its iPad and MacBook production to Vietnam.
Sources have said that Foxconn will be building new production lines at its facility in Vietnam’s Bac Giang province. Those with knowledge on the subject has stated that the production lines will open in the first half of 2021. As much of this plan is being kept private, there’s currently no word on how much of the production will be shifting away from China. Apple has yet to comment on the matter.
Apple is investing quite heavily and leaning into Vietnam for production, especially this year. Earlier in 2020, Apple suppliers began transitioning roughly 30 percent of AirPods production to Vietnam. The heavy investment, especially in the Bac Giang province has caused an economic boom.