+1-888-308-5802     
News Contact Us

U.S. tech giants plan to shift hardware assembly away from China

Author : Saipriya Iyer | Published Date : 2020-03-06 

With the ongoing U.S.-China trade war and recent outbreak of the deadly new coronavirus in the world’s second largest economy, the leading American tech firms Google, Microsoft and Apple are reportedly looking to moving production of their hardware products out of China. However, mitigating reliance on China could be quite challenging.

Microsoft and Google are accelerating their efforts to shift production of their hardware products to other parts of Asia. The biggest issue that surfaces is that moving supply chains quickly to other countries in Asia is a laborious task and China still has a major role to play. This further implies that transferring the risk is a lot harder. 

As per sources close to the matter, Google is set to initiate production of an upcoming low-budget smartphone (rumored to be called the Pixel 4a) in Vietnam by April. An upcoming flagship smartphone by Google will also be manufactured in Vietnam in the second half of the year.

Reportedly, Google is in deal with a Thai manufacturing partner to prepare production lines for voice assistant-enabled speakers and other smart home products. On the other hand, Microsoft is planning to start production in Vietnam in the second quarter of 2020 for its Surface line of desktop PCs and notebooks.

In 2019, Apple was looking forward to starting a trial to produce its AirPods in Vietnam and also asked the suppliers to try and shift 15-30 percent of its production from China to other South East Asian countries.

On the current scenario, P.S. Subramaniam, Partner at A.T. Kearney was reportedly quoted saying that nearly 40% of finished goods globally are sourced from China but there is capacity in other areas of the world too and it is easier to branch out away from China for a short term for most of the businesses, who have considerably developed product and assembly process documentation.

Subramaniam added that around 60% of modules are made in China and is harder to move away, however, it is still feasible.

 

Source Credit: https://www.cnbc.com/2020/03/05/coronavirus-apple-microsoft-google-look-to-move-production-away-from-china.html

About Author

Saipriya Iyer

Saipriya Iyer

Saipriya Iyer presently works as a content developer for fractovia.org. Having dabbled with the domain of content creation for nearly half a decade, she now boasts of an enviable portfolio, holding substantial experience in penning down pieces related to technology, finance, and a wide spectrum of other industry verticals. A qualified computer engineering graduate from the University of Pune, Saipriya can often be found leveraging her knowledge of software technology and electronics in her write-ups. She can be contacted at- [email protected] | https://twitter.com/saipriya_i

Related News

Discord gaming app to become a general-purpose communications platform

Published Date: 2020-07-02         Author: Saipriya Iyer

Discord application, which was originally launched with a focus on video games, has reportedly announced that it is planning to emerge into a more general-purpose communications platform. Jason Citron, the Founder and CEO of Discord, has stated that the company’s original branding did not s... Read More

Amazon to offer 20,000 temporary or seasonal employment opportunities

Published Date: 2020-06-29         Author: Saipriya Iyer

Amazon has recently stated that it will offer nearly 20,000 temporary or seasonal employment opportunities in its CS (customer service) organization. This will enable the company to offer a seamless shopping experience for users in India and across the globe. These temporary job opportunities wer... Read More

Singtel & StarHub choose Ericsson & Nokia as 5G network providers

Published Date: 2020-06-26         Author: Saipriya Iyer

Telecommunication operators in Singapore have reportedly chosen Ericsson AB & Nokia Oyj as the main 5G network providers. This has led Huawei Technologies Co. to have less significant contracts in the region. Singapore Telecommunications Limited has chosen Ericsson as its main 5G provider, wh... Read More

© 2020 Fractovia. All Rights Reserved