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Major Apple Supplier to Divert iPad, MacBook Production From China to Vietnam

The move comes amid major production shifts from China to Vietnam over the last two years.

Reuters reports that Foxconn, the Taiwanese corporation that is Apple's largest supplier, is in the process of moving parts of its iPad and MacBook production to Vietnam at the request of the American tech giant.

The news source adds that such shifts have been spurred in part by the US-China trade war, as well efforts by the Trump administration to hit electronics produced in China with tariffs and restrict access to US technology by Chinese companies.

Taiwanese corporations like Foxconn, which has a huge presence in China, have responded by diversifying production to Vietnam, Mexico and India.

According to the reporting, Foxconn is currently building assembly lines for the two above Apple products at its factory in Bac Giang Province. These are expected to come online in the first half of 2021.

TrendForce, a research group based in Taipei, told the wire service that this would be the first time that iPad assembly has taken place outside of China. Foxconn had previously announced plans to spend about US$1 billion to expand its iPhone production plant in India.

In September Pegatron, another major Apple supplier, said that it planned to invest US$1 billion in an electronics manufacturing facility in Hai Phong.

This massive investment in Vietnam's manufacturing sector, along with the country's thus-far successful handling of the COVID-19 pandemic, has buoyed the overall economy, keeping the nation on track for GDP expansion this year at a time when many major economies face huge contractions.

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