Google is about to move production from China to Vietnam

Obviously, it is a fact that some big technology companies including Google, Apple and Microsoft have moved their production lines of the world’s most popular technology from China to Vietnam.

Google’s plan

According to information from The New York Times, “Part of the production process of Google’s latest Pixel phones will be done in Vietnam.” According to the report, Google expects Vietnam to deliver “next year’s top half, the last Pixel phone”.

Google showed off the Pixel 7 and Pixel 7 Pro at its Google I/O event in May.

Besides that, Google is also working on a foldable device in preparation that could be released in 2023, however, its production may still be in China. This is because the display and hinge technology is required to be closer to the main suppliers in China.

Although Google has yet to officially confirm its upcoming foldable phone, popular Weibo messenger Digital Chat Station claims that the company is still planning to release one in Q4. this year. Production is likely to be handled by Foxconn and will begin as early as the third quarter of 2022. In addition, Foxconn will be taking orders for Pixel 7.

Leaked Google foldable phone model.

The COVID-19 pandemic is still a huge factor in supply chain disruptions in China. Frequent lockdowns have also caused production delays and affected sales of major tech companies.

In addition, the US-China trade war started under US President Donald Trump, the tariff sanctions imposed by the two sides have also caused supply disruptions, forcing some companies Big tech has to think about leaving China. And Vietnam is considered a promising destination.

Following in Apple’s footsteps?

Before Google, Apple planned to negotiate to produce Apple Watch and MacBook for the first time in Vietnam, marking another step of Vietnam in the “giant’s” plan to diversify production away from China. “American technology.

Tech giant Apple is also planning to move production of Apple Watch and MacBook to Vietnam

Accordingly, Apple’s suppliers located in Vietnam such as Luxshare and Foxconn have begun trial production of Apple Watch in Vietnam with the aim of producing this device for the first time outside of China.

Vietnam is currently considered Apple’s most important manufacturing hub outside of China, producing a range of flagship products for the American company, including iPad tablets and AirPods headphones. Apple’s recent list of top 200 suppliers shows that about 10% of them are operating factories in Vietnam.

Earlier, at the beginning of June, Apple also announced that it would move iPad production to Vietnam in the context of the US-China trade war over the years and “zero-” measures. Covid” of the Beijing government. And Foxconn is the supplier that is “chosen to send gold”.

“AirPods, Apple Watch, HomePod and more, Apple has big plans in Vietnam, in addition to iPhone production,” said one of the people with direct knowledge of the matter.

Can Vietnam replace China?

China is still the largest electronics factory in the world. However, after many events including the US-China trade war and the COVID-19 pandemic, many US technology companies have to consider changing production locations. Apple, Google and Microsoft are major players looking to move some manufacturing out of China.

Even so, very few jobs return to the US. Besides Apple and Google, Microsoft and even Amazon, another tech giant has also brought part of the production of Xbox and Amazon’s Fire TV to Vietnam and India.

This may be showing that China’s role as “world factory” is more shaky than ever.

“China’s role as the world’s most important factory has been challenged since the trade war and subsequent zero-energy policies,” said Eddie Han, senior analyst at Isaiah Research. COVID. That really makes Vietnam an ideal destination for many electronics manufacturers as they gradually develop their supply chain ecosystem.”

However, it will be a long time before China can be completely replaced. Overall, over the past 20 years, the technology industry has built a substantial and low-cost supply chain in China. Therefore, it is impossible to change overnight.

“We have a long way to go to diversify our entire supply chain outside of China,” said Mehdi Hosseini, an expert at Susquehanna International Group.

Source: CafeF