Foxconn to shift some Apple production to Vietnam to minimise China risk

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Apple is planning to move production of some of its iPads and MacBooks to Taiwan, according to a Reuters report.

Though competitors rush to cut prices and capitalise on the global sales event each year, Apple tends to play it cool. Why?

Second, Apple is trying to manufacture its products in different countries.

Apple recently launched the first batch of products with the M1 chip, which brings the Apple Silicon architecture to the market. This past summer, Apple announced its transition to a new unified gift card system that combines Apple's iTunes and App Store gift cards with its traditional store gift cards. Apple's dependence on China was also thrown into stark relief at the beginning of the coronavirus pandemic, as the outbreak caused major disruption in the company's supply cahin.

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Foxconn has not shared any details regarding the move, but the company's latest $270 million investment for setting up a new subsidiary that goes by the name FuKang Technology Co Ltd is reportedly a part of the expansion plans in Vietnam.

For example, a year ago Apple simply said it would be offering gift cards of up to $200, but kept everyone in the dark as to what products those would apply to until the sales actually went live. However, it is unclear how big a chunk of iPad and MacBook assembly Foxconn is migrating from China to Vietnam.

Foxconn Chairman Young Liu said in August the company moved more manufacturing to Southeast Asia and other regions to avoid escalating tariffs on Chinese-made goods headed to US markets.

It 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.

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