Apple suppliers such as TSMC are under pressure to move 15%-30% of their business out of China?

On October 11, according to the latest foreign media reports, a number of Apple suppliers revealed that Apple continued to put pressure on them to move 15% to 30% of their production operations out of mainland China! The pressured suppliers include TSMC, Foxconn, Wistron, and Pegatron!

Apple suppliers such as TSMC are under pressure to move 15%-30% of their business out of China?

It is understood that the main transfer locations are Vietnam, Thailand, India and other Southeast Asian countries.

Apple suppliers such as TSMC are under pressure to move 15%-30% of their business out of China?

U.S. technology companies are currently shifting some of their production operations to countries such as Vietnam, Thailand, Malaysia and India. Apple suppliers such as Pegatron have been looking to invest in supply plans in Vietnam, where the company may manufacture new Apple earphones, the AirPods.

Apple’s pressure, for the tech industry, marked the end of an era when products were designed in the West and then manufactured in the industrial heart of mainland China. For 30 years, this model has provided the best combination of cost, quality, human resources and infrastructure. Now, the industry is increasingly dependent on the fragmented supply chains that have emerged in Southeast Asia.

An executive at an Apple supplier said: “The mindset of customers has changed, and growing tensions are forcing them to think about their production strategy, like buying insurance. In the next two or three years, you will see not only large electronics assemblers, but also There are more and more component suppliers moving production outside mainland China to support new supply chains.”

But it’s not that simple for tech companies, for whom mainland China is not only a mature production base, but also their fastest-growing market. 20% of Apple’s total revenue, more than 20% of Intel’s revenue, and 60% of Qualcomm’s sales come from mainland China. Although in many cases products sold in mainland China are later re-exported to other markets.

For the global tech industry, the question is whether alternative supply chains can rival those in mainland China that produce more than 200 million iPhones a year. To this end, Apple has adopted a “two-sided strategy”: while promoting the production of suppliers to leave mainland China more quickly, it is also actively cultivating local Chinese suppliers, allowing them to play a more important role in China and ensuring continuous entry into 14 The ability of a strong market of billions of users.

However, not every company has the resources to keep expanding beyond China like Apple and Foxconn. The reality is that chip developers still rely on a handful of key U.S. chip manufacturing production and design tool providers, such as Applied Materials, LAM, KLA, Synopsys, and Cadence Design Systems, to make the most advanced chips possible.

  

On October 11, according to the latest foreign media reports, a number of Apple suppliers revealed that Apple continued to put pressure on them to move 15% to 30% of their production operations out of mainland China! The pressured suppliers include TSMC, Foxconn, Wistron, and Pegatron!

Apple suppliers such as TSMC are under pressure to move 15%-30% of their business out of China?

It is understood that the main transfer locations are Vietnam, Thailand, India and other Southeast Asian countries.

Apple suppliers such as TSMC are under pressure to move 15%-30% of their business out of China?

U.S. technology companies are currently shifting some of their production operations to countries such as Vietnam, Thailand, Malaysia and India. Apple suppliers such as Pegatron have been looking to invest in supply plans in Vietnam, where the company may manufacture new Apple earphones, the AirPods.

Apple’s pressure, for the tech industry, marked the end of an era when products were designed in the West and then manufactured in the industrial heart of mainland China. For 30 years, this model has provided the best combination of cost, quality, human resources and infrastructure. Now, the industry is increasingly dependent on the fragmented supply chains that have emerged in Southeast Asia.

An executive at an Apple supplier said: “The mindset of customers has changed, and growing tensions are forcing them to think about their production strategy, like buying insurance. In the next two or three years, you will see not only large electronics assemblers, but also There are more and more component suppliers moving production outside mainland China to support new supply chains.”

But it’s not that simple for tech companies, for whom mainland China is not only a mature production base, but also their fastest-growing market. 20% of Apple’s total revenue, more than 20% of Intel’s revenue, and 60% of Qualcomm’s sales come from mainland China. Although in many cases products sold in mainland China are later re-exported to other markets.

For the global tech industry, the question is whether alternative supply chains can rival those in mainland China that produce more than 200 million iPhones a year. To this end, Apple has adopted a “two-sided strategy”: while promoting the production of suppliers to leave mainland China more quickly, it is also actively cultivating local Chinese suppliers, allowing them to play a more important role in China and ensuring continuous entry into 14 The ability of a strong market of billions of users.

However, not every company has the resources to keep expanding beyond China like Apple and Foxconn. The reality is that chip developers still rely on a handful of key U.S. chip manufacturing production and design tool providers, such as Applied Materials, LAM, KLA, Synopsys, and Cadence Design Systems, to make the most advanced chips possible.

  

The Links:   MG50Q2YK1 LM215WF3-SLS2 IGBTCOMPANY

Author: Yoyokuo