The production lines are expected to come into operation in Vietnam in 2021.
According to Bloomberg, Apple’s partners have ramped up iPhone production capacity in India, and companies that assemble AirPods have added some assembly lines in Vietnam.
Foxconn announced US$270 million of new investments earlier this week, which a person familiar with the company’s operations said was for Vietnam.
“This would be done to help Apple diversify production away from China and reduce the impact of the US-China trade war. Firms located in Taiwan such as Foxconn are also concerned about the trade war and are working out ways to move production out of China and into Vietnam, Mexico, and India,” according to phonearena.com.
Some AirPods are manufactured in Vietnam and next year, the third-generation AirPods are expected to be made in the country and released during the first half of the year, it said.
The US and China are still in a trade war. According to silicon.co.uk, during the past four years, the US has targeted made-in-China electronics for higher import tariffs, and restricted supplies of components produced using US technology to Chinese firms it deems a national security risk.
A partial shift to Vietnam would reduce the impact if the trade war worsens, and could be helpful for maintaining output even if the incoming Biden administration eases tensions, reported engadget.com.