The New York Times: Instead of China

Apple and Google are gearing up to manufacture in India and Vietnam

US companies see more risks in China.

From the source

In the coming weeks, the American companies "Apple" and "Google" are scheduled to unveil the latest generation of smartphones, but one of the most important changes that consumers may not notice is that some of these phones will not be manufactured in China as usual.

Informed sources revealed to the American newspaper "The New York Times" about Apple's plans to manufacture the new iPhone in India, and Google's production of the Pixel phone in Vietnam.

It considered this shift as a response to growing concerns about geopolitical tensions and supply chain disruptions caused by the Corona pandemic.

For many years, China has been a high-tech and unparalleled platform for electronics manufacturing in the world, especially with its great capabilities to secure skilled labor, and its production capabilities to handle the huge demand.

However, US companies now see more risks in China, due to the trade war started by former US President Donald Trump and reinforced by the visit of House Speaker Nancy Pelosi to Taiwan last month.

And it is not only the production of smart phones that is moving outside the country, as Apple produces iPads in northern Vietnam, and Microsoft will also ship Xbox devices this year from Ho Chi in Vietnam, while Amazon manufactures Fire TV in Chennai, India.

All of these devices have been produced in China for several years.

A fractured supply chain extends across Asia, driving up industrial land prices in Vietnam, reviving industrial activity in Malaysia, and increasing demand for low-wage workers in India.

And factory closures in China in early 2020, due to the outbreak of the “Corona” pandemic, destabilized the sales plans of many companies, including “Apple”, which was forced to reduce its quarterly sales forecast because it was unable to manufacture the “iPhone”, which called Company operations team to search for alternative manufacturing sites.

An informed source said that “Apple” has already started producing “AirPods” headphones in Vietnam in 2020, and has also started producing its watch and transferring the iPad manufacturing there as well, while it plans to assemble and package part of the “iPhone 14” for this year, in India for the first time.

In the same context, Google plans to move manufacturing from Foxconn's facilities in southern China to Vietnam, where it will begin assembling its latest model, the Pixel 7, and the company expects Vietnam to supply up to half of the advanced Pixel phones next year. .

Deal

Foxconn, the largest maker of Apple products, in Vietnam has signed a $300 million deal to expand in the north of the country with a new factory that will create 30,000 jobs, according to state media.

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