Apple Has Eyes on Vietnam to Diversify MacBook Production in 2023
According to a new report, Apple is looking to diversify its production of its popular MacBook family of laptops. Apple has long made MacBooks in China and has been reluctant to move production out of the country. but, Nikkei Asia claims longtime supplier Foxconn has signed a deal to produce MacBooks in Vietnam. Interestingly, all of Apple’s other major product lines already have separate production sites outside of China, leaving his MacBook as the final piece in the diversification puzzle.
There are several reasons that motivate Apple to move MacBook production out of China. Perhaps one of the more pressing issues is China’s crackdown on the spread of his COVID-19 in the country. China until recently had a zero COVID policy, requiring those infected with COVID-19 to be quarantined in national facilities to prevent further spread among the population. The facility was reportedly understaffed in poor living conditions, and its use separated people from their families (often against their will).
In recent days, China has begun easing some of its COVID-19 policies, allowing infected people to quarantine at home rather than in government facilities (among other concessions). However, there are many uncertainties about how China’s National Health Commission’s policy will change in the future. These policy changes could also affect workers who assemble his Apple devices in China.
The biggest problem, however, concerns the escalation of US sanctions against Chinese companies. The sanctions will prevent Chinese companies from acquiring semiconductors with advanced U.S. technology. The US has cited national security reasons for the crackdown, but Beijing has fought back and lodged an official complaint with the World Trade Organization.
“China will take legal action within the framework of the WTO as a necessary way to address our concerns and protect our legitimate interests,” China’s Ministry of Commerce said in a statement earlier this month. “[U.S. restrictions threaten] Stability of global industrial supply chains. ”
By moving some of its MacBook production from China to Vietnam, Apple could at least partially isolate itself from the immediate geopolitical upheaval stemming from the sanctions. According to a Nikkei Asia report, Apple has already set up a MacBook test line in Vietnam, and it could start full-scale production as early as May 2023.
“After the MacBook production shift, basically all of Apple’s flagship products will have another production base outside of China… India’s iPhone, Vietnam’s MacBook, Apple Watch, iPad,” Apple said. A person familiar with the plan said. Nikkei Asia“What Apple wants now is to offer a ‘out of China’ option for at least a portion of the production of all its products.”
Apple’s next big MacBook release is scheduled for early 2023. At that point, the company will reportedly launch new 14 and 16 inch MacBook Pros that will use the M2 Pro and M2 Max SoCs that use the 5-nanometer process node.