The southward trend cannot be resisted. Let’s take stock of which technology factories’ supply chains have shifted in recent years.
TechNews Financial News
August 20, 2024
Author Qiu Shixin
August 20, 2024
Author Qiu Shixin
In the past, China has always been the first choice for technology manufacturers to build product supply chains. However, in recent years, due to rising labor costs caused by the declining demographic dividend, and in order to avoid the impact of geopolitics, technology manufacturers have begun to accelerate the move of supply chains out of China, or to Part of the production capacity has been moved to Southeast Asia, South Asia and other places.
Recently, there are rumors that Hewlett-Packard (HP) is considering moving more than half of its personal computer production capacity from China to Thailand, Vietnam and other countries; HP will take this move mainly because it wants to significantly reduce its dependence on the Chinese supply chain, and Respond to changes in global trade conditions and the need to reduce costs.
But apart from HP, which other well-known technology manufacturers have transferred their supply chains to Southeast Asian and South Asian countries?
Apple
The best example of supply chain transfer is Apple, because Apple, which has long relied on China's supply chain, is subject to political and commercial factors. The company's past era of complete dependence on China has come to an end.
iPhone
The iPhone is one of Apple's most important products. Although supply chain diversification was originally in Apple's plan, due to a series of conflicts at Foxconn's Zhengzhou factory during the epidemic, Apple had to accelerate the promotion of this plan. process.
According to many reports, as of April this year, Apple has assembled a total of US$14 billion worth of iPhones in India, and 14% of iPhones are manufactured in India.
India’s Minister of Science and Technology also posted on the X platform in May that up to a quarter of iPhones are expected to be produced in India by 2028.
iPad
In addition to the iPhone, Apple has also moved the production of iPads to Vietnam. Foxconn is mainly responsible for local production, and Foxconn's Vietnam factory is currently mass-producing and shipping iPads.
MacBook
Like the iPad, MacBook production lines were partially moved out of China and then moved to Vietnam; MacBooks are mainly produced in Vietnam by Quanta and Foxconn.
There were earlier rumors that Apple also intends to transfer some of its production capacity to Thailand, but so far, Thailand is still a potential transfer location. The main reason is that the related component supply chain in Thailand is not yet mature, and many components still rely on exports from China. However, There were too many transportation costs and potential factors that could cause damage, so Apple decided to first launch the relevant production lines in Vietnam. But Thailand's electronics manufacturing infrastructure and cost advantages make it one of the potential future production locations.
Earlier, Google Pixel was also produced in China. However, in recent years, Google has also joined the footsteps of its peers and moved its supply chain to Vietnam and India. The reason is similar to Apple. As Sino-US relations are still tense, Google also promotes the use of its smart phones. The mobile phone supply chain is diversified, and the company is targeting India, a booming emerging market, and is paying more attention to the Indian market.
The location for the transfer of Google Pixel production was originally only selected in Vietnam. However, there are rumors that due to the negligence of production line personnel in the country, not only did new products be exposed before the launch, but there were also reports of employees stealing products. Therefore, Google this year It was decided to add India as another production location.
Samsung
Samsung has long been ahead of its peers and produces its Galaxy smartphones in Vietnam. Vietnam is now one of the company's largest smartphone production bases in the world. It is said that about half of Galaxy smartphone production is concentrated in Vietnam.
However, India is still a battleground for consumer electronics manufacturers, so Samsung has now expanded its smartphone production facilities in India, and India has become another of its major production bases.
In addition to smartphones, Samsung also plans to expand the production of TVs and other home appliances in India.
Dell
Dell has started manufacturing some laptops in India to serve the local market and is gradually moving some production from China to India. But Dell still has some parts of the transfer process underway.
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