Apple partner Heshuo plans to move production line out of China
27
Jan 2020

Kirsten Thomas

Apple partner Heshuo plans to move production line out of China

Due to the US-China trade war in the past two years, some manufacturers have moved their production lines outside China to avoid the impact of switching taxes. Now, according to a Bloomberg report , a person familiar with the matter revealed that Taiwan Pegatron United Technology Co. also intends to set up a production plant in Vietnam. If true, Pegatron will be an iPhone maker that will relocate or set up a manufacturing plant in Vietnam following Wistron and Hon Hai Precision.

People familiar with the matter said they had also leased a factory in Haiphong, north of the country. However, the factory mainly produces styluses for Samsung smartphones. In fact, none of the aforementioned foundries has a record of producing iPhones in Vietnam.

According to foreign media analysis, the reason why manufacturers have moved their production lines out of China or set up factories outside China is because of the US-China trade war in the past two years. Although the US and China have recently reached the first phase of the agreement, the situation between the two parties is still tense Coupled with rising labor costs in China, diversification of the production chain is still necessary.

In response to Bloomberg's report, Heshuo issued a statement to the Central News Agency , saying that the company did observe the investment environment in Southeast Asia, but everything is still being evaluated and not yet certain.