Following a request from Apple, Foxconn could be shifting production out of China for some iPad and MacBook models according to a report from Reuters. The new assembly lines would be based in Vietnam.
As a recent investigation from The Information highlighted, both companies are intrinsically connected. The Taiwanese manufacturer is Apple’s main production partner. Apple is also Foxconn’s main client. When it comes to raw numbers, Foxconn is making 60% to 70% of iPhones, Apple’s main product.
Over the past few years, Apple has tried to diversify its supply chain in two major ways. First, Apple is trying to work with other manufacturing companies, such as Luxshare Precision Industry and Wistron.
Second, Apple is trying to manufacture its products in different countries. New tariffs and import restrictions have made that issue more pressing.
According to Reuters, Apple asked Foxconn to move some iPad and MacBook assembly to Vietnam. The assembly line should be operating at some point during the first half of 2021.
In addition to Vietnam, Foxconn also produces iPhone 11 devices in a plant near Chennai, India. Wistron also assembles iPhone models in India. Foxconn has also manufactured some iPhone models in Brazil.
Source: Tech Crunch