DUBLIN: Apple is planning to reduce its reliance on Chinese products as a result of the trade dispute between China and the United States. At Apple’s request, Foxconn moved its iPad and MacBook assembly units from China to Vietnam.
Taiwan’s Foxconn, formally Hon Hai Precision Industry, this week announced an investment of $ 270 million to set up a new subsidiary called FuKang Technology — a move understood to be aimed at supporting the Vietnam expansion.
Under US President Donald Trump, high tariffs were imposed on Chinese-made electronics imports. The Trump administration has said the decision was made because of security concerns. Taiwanese manufacturershave shifted production units from China to countries such as Vietnam, Mexico and India, citing fears of a trade war.
Foxconn is understood to be building assembly lines for Apple’s iPad tablet and MacBook laptop at its plant in Vietnam’s north-eastern Bac Giang province. It will come online in the first half of 2021. Foxconn said in a statement that this is part of its diversification. Apple is not yet ready to respond to this news.
They also plan to build television sets at the Vietnam plant for clients, including Sony. The production will begin here in late 2020 or early 2021. The factory will also manufacture other electronic products such as computer keyboards.
Foxconn already plans to spend up to $1 billion to develop an iPhone assembly plant in India to meet Apple’s demand to diversify production.
Foxconn chairman Liu Young-way in August told investors the China-US trade war had split the world into two. Other iPad assemblers include Taiwan’s Compal Electronics and China’s BYD Electronic International.