President of Pegatron – iPhone manufacturer for Apple said about the plan to open a factory in Vietnam: “China is no longer the optimal production point since more than 5 years ago.”

Tram Ho

The move aims to move production out of the company’s main factories in China, where operating costs increase due to higher labor costs and the US-China trade war ,” said Tung Tzu- hsien, President of Pegatron said.

The company is one of several Taiwanese manufacturers that are in the process of diversifying production from China.

Pegatron manufactures a wide range of electronic devices, including Apple’s iPhones, under contract. Pegatron is the second largest manufacturer after Taiwanese company Hon Hai Precision Industry, known as Foxconn.

Tung told Nikkei that China “has not been an optimal production site since more than five years ago”, adding, “When US President Donald Trump stoned China, the process of diversifying production began. “.

Indonesian and Vietnamese factories will make internet-connected devices ,” Tung said. The Indonesian plant will be on Batam Island, about 20 km from Singapore, while the Vietnamese factory will be in the north of the country.

Along with the plan to expand the domestic production line to meet Taiwanese leader Tsai Ing-wen’s local production promotion policy, Pegatron aims to diversify production, but still focuses heavily on in China.

Major smartphone manufacturers in China and the US are looking for contract manufacturers in India, where sales are still rising fast, but Pegatron is not ready to take that opportunity, ” Tung said. . India “is an important option, but we have not received the consent of our customers.”

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Source : Genk