Apple's manufacturing partner Wistron Corp. has announced last week that it could produce half of its normal capacity outside of China within 2020. Since the declaration, iPhones and other gadgets have shifted to a higher gear after the global outbreak. Apple is looking to shift production out of China since the trade war last year.
Decisions by companies in league with Apple such as its partners and Wistron including Hon Hai Precision, Inventec, and Pegatron may shift their supply chains outside of China. Wistron, Taipei-listed company, looks to relocate its factories in India where it is already producing iPhones. It is also looking into Vietnam and Mexico.
The company announced that it would set aside one billion USD to fund its expansion by 2020 and 2021. Chairman Simon Lin revealed during earnings call that customers believed that the business shift would be beneficial to all parties. He also announced that said customers would appreciate it if the company could continue with the plan and that they would continue their business dealings on that condition.
Pegatron, assigned with the assembly of iPhones, also manifested its plan to diversifying its production locations in Taiwan. According to the company's chief executive officer Liao Syh-jang, it hopes to start operations in Vietnam next year after it would set up its new plant in Indonesia. It also considers India as a potential location for its new facilities.
The firm also announced that it had already engaged in an agreement to purchase land and create a plant in northern Taiwan.
Inventec, Apple's main assembly company for AirPods, has announced that it is preparing establishment of a plant in Vietnam as well with Hon Hai who was adversely affected by the standstill in China. Better known as Foxconn, the company showed signs that it would shift its global production paradigm as well to maintain its superiority in the electronics industry for three decades.
Foxconn also operate in China and would fully abandon its electronics workshop soon. The report claimed that it is difficult to replicate the network of suppliers it has in China along with competent workers. Hence, the company is looking to establish efficient distribution systems and large home market that India offers. Large-scale relocation of its manufacturing capabilities revealed to take greater time.
According to Apple's chief executive Tim Cook, the company is not looking to make business moves on a hastened fashion. It claimed, however, to adjust and sort its wholesale and fundamental changes to realize its revenue forecasts.
