Tech company Apple Inc. is moving one of its major assembly lines out of China. This is due to concerns amid the U.S.-China trade war.
An unnamed source told Reuters that Apple on Nov. 16 requested its major manufacturing supplier, Foxconn, to move iPad and MacBook assembly lines out of China and to Vietnam. An assembly plant is being built there that’s set to come online in the first half of 2021.
Taiwan-based Foxconn is one of the world’s largest electronics manufacturing services. It has more factories in China than in any other country: that’s 12 factories across 9 cities. It’s one of Apple’s oldest and largest suppliers and builds most of Apple’s iPhones.
The source also added: “The move was requested by Apple, It wants to diversify production following the trade war.”
The United States has imposed high import tariffs on electronics made in China. It’s also restricted supplies of U.S.-made components from being sent to Chinese firms—in particular those that pose national security risks.
Foxconn declined a request for comment from Reuters.
In July, sources with knowledge of the matter told Reuters that Foxconn plans to spend up to $1 billion expanding an iPhone assembly plant in India. The move was reported as “strongly requested” by Apple. It appears to be an effort to diversify production, and move away from relying solely on China.