The government of the outgoing US President Donald Trump tried to force American companies to move production from China. During Trump’s tenure, the United States imposed higher import tariffs on electronics made in China and limited the supply of components made using American technology to Chinese companies that Washington sees as a risk to national security.
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Taiwanese producers fear they will be dragged into a trade war, so they have moved or are considering moving part of their production from China to countries such as Vietnam, Mexico and India. According to sources, Foxconn is now building an assembly line for iPad tablets and MacBook laptops in northeastern Vietnam. It should start production in the first half of next year.
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“Apple demanded a change. It wants to diversify its production after the trade war, “said the source. Foxconn declined to comment on the information, and Apple did not comment on the request for comment.
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Foxconn, also known as Hon Hai Precision Industry, announced on Tuesday that it is investing $ 270 million (CZK 5.9 billion) in establishing a new subsidiary, FuKang Technology. According to the source, the company will aim to support the expansion of Foxconn in Vietnam. Foxconn also plans to produce in-country for its clients, including Japanese Sony, TVs and other electronics, the source added.
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According to research company TrendForce, all iPads are now assembled in China. The eventual move will mean that iPads will be manufactured outside China for the first time. In addition to Foxconn, iPads are also assembled by the Taiwanese company Compal Electronics and the Chinese BYD Electronic International.
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