Name: Apple is reportedly moving iPad production out of China for the first time ever because of Trump's trade war
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Apple is reportedly moving iPad production out of China for the first time ever because of Trump's trade war

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The words "Business Insider".Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.Major Apple supplier Foxconn is moving some iPad and MacBook assembly to Vietnam from China at the request of Apple, a person with knowledge of the plan told , as the US firm diversifies production to minimize the impact of a US-China trade war.The development comes as the outgoing administration of President Donald Trump encourages US firms to shift production out of China. During Trump's tenure, the United States has targeted made-in-China electronics for higher import tariffs, and restricted supplies of components produced using US technology to Chinese firms it deems a national security risk.Apple was able to , but it seems the iPhone-maker is wary that being dependent on China for its global supply chain, which could make the company vulnerable to geopolitical forces.Apple's dependence on China was also , as the outbreak caused major disruption in the company's supply cahin.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.The lines will also take some production from China, the person said, without elaborating how much production will shift."The move was requested by Apple," the person said. "It wants to diversify production following the trade war."Foxconn said in statement: "As a matter of company policy, and for reasons of commercial sensitivity, we do not comment on any aspect of our work for any customer or their products".Apple did not immediately respond to a request for comment.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.Shifting iPad production to Vietnam will mark the first time Foxconn has assembled the device outside of China.This isn't the first indication we've had that Apple is looking to seed its global supply chain beyond China.The firm 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 in July.Foxconn and peers such as Pegatron Corp are also considering building plants in Mexico, people with knowledge of the matter said, as Washington promotes near-shoring production.Foxconn Chairman Liu Young-way in August told investors the US-China trade war had split the world into two, saying his firm aimed to provide "two sets of supply chains."NewsletterYour morning cheat sheet to get you caught up on what you need to know in tech. Sign up to 10 Things in Tech You Need to Know Today.Something is loading.It indicates an expandable section or menu, or sometimes previous / next navigation options.Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.

The words "Business Insider".Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.Major Apple supplier Foxconn is moving some iPad and MacBook assembly to Vietnam from China at the request of Apple, a person with knowledge of the plan told , as the US firm diversifies production to minimize the impact of a US-China trade war.The development comes as the outgoing administration of President Donald Trump encourages US firms to shift production out of China. During Trump's tenure, the United States has targeted made-in-China electronics for...

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Reuters

Isobel Asher Hamilton

Business Insider is an American financial and business news website founded in 2009 and owned by the German publishing house Axel Springer. It operates 14 national editions and an international edition. Several national editions are published in local languages.

Apple is reportedly moving iPad production out of China for the first time ever because of Trump's trade war

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