BYD, a major supplier of the American technology group Apple, wants to relocate part of its iPad production from China to Vietnam, reports the Nikkei daily. The information was confirmed to Bloomberg by a local government official. A trial was already carried out in May, he said.
Expensive lockdowns
Until now, the iPad was completely assembled in China. But due to Beijing’s zero Covid policy and strict lockdowns imposed in major cities across the country, such as Shanghai, manufacturers are looking for alternatives. According to Apple, the measures once morest the coronavirus taken by China have already cost the Apple brand some 8 billion in turnover.
BYD’s production will now take place in northern Vietnam, in the province of Phu Tho. The company has hired 4,000 people for this purpose, but according to the local government official, some 12,000 people would be needed. The factory might manufacture 4.33 million tablets annually.
AirPods are also produced in Vietnam, an illustration of Apple’s desire to diversify its production chains in Southeast Asia. The apple brand has also asked its suppliers to stockpile certain components, in order to deal with potential disruptions in supply chains.
Another major Apple subcontractor, Foxconn, also relocated part of its production to Vietnam last year.
