The American tech companies Google and Microsoft are moving part of their production from China to other parts of Southeast Asia at an accelerated pace, writes Nikkei Asian Review on Wednesday based on insiders at both companies. The reason for the accelerated relocation of production to other parts of Southeast Asia is the outbreak of the corona virus, which has mainly hit China.
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More and more tech companies want to become less dependent on the latter because of the trade war between the United States and China. They therefore choose to transfer parts of their production to neighboring countries. Initiates tell Nikkei Asian Review that the COVID-19 virus outbreak accelerates the relocation of parts of production.
The business newspaper reports that Google will begin production of the company's new budget smartphone, which is likely to be called Pixel 4A, in North Vietnam in April. According to insiders, Google will also build the company's new flagship, which is expected to be called Pixel 5, in Vietnam, but in the second half of 2020.
According to Nikkei Asian Review, Google would even have asked suppliers if it was possible to disconnect equipment used in production in China and ship it to Vietnam.
While Google wants to transfer part of the smartphone production to Vietnam, the company is looking to Thailand for the production of smart home products, such as the Nest speaker set.
Microsoft is also starting production of the Surface line, including laptops and PCs, earlier than expected in North Vietnam. The Japanese business magazine writes that production will start in the second quarter of this year at the earliest.