CORONAVIRUS: Big Brands Lining Up To Ditch China, Consumers Set To Shun Chinese Brands
Major consumer electronic suppliers are moving to shift their manufacturing out of China at the same time Australians are shunning Chinese brands such as Oppo, Huawei and Hisense who are struggling to supply their TV’s as a large percentage of their manufacturing is in Wuhan the home of the Coronavirus.
Among the biggest to initiate exit strategies is Apple, Samsung has already moved their smartphone manufacturing to Vietnam, they have also invested millions to manufacture in India.
Dell has also moved their manufacturing operations out of China including entire production lines.
The Wistron Corporation a key manufacturer of components for Apple said at the weekend that half its capacity could reside outside China within a year.
iPhone assembler Pegatron is also diversifying manufacturing sites, by adding additional capacity in Taiwan.
Chief Executive Officer Liao Syh-jang told Bloomberg that the company hopes to kick-start manufacturing operations in Vietnam in 2021 after setting up a new plant in Indonesia last year, they are also looking at India as a location for new facilities.
It said on Friday it had agreed to purchase land and a plant in northern Taiwan.
Audio manufacturer Meiloon Industrial which makes speakers for Harman International the maker of JBL and Harman Kardon sound gear said it’s seeking alternatives to China-based production and speeding up a move of capacity to places such as Taiwan and Indonesia, spokesperson Eva Kuo said in a phone interview.
Apple’s main assembly partner for AirPods, Inventec, said it’s also preparing to establish a unit in Vietnam.
Foxconn the world’s biggest technology product manufacturer augurs a potential shift in a global production paradigm that’s governed the electronics industry well over three decades is happening.
The company also has facilities in India, where it began churning out iPhones last year, and Vietnam. “Trade, the virus, all these things will make the world very different in the next decade,” Alex Yang, the company’s investors relations chief, told investors in a recent call.
Analysts claim it’s unlikely that China will fully give up its place as the world’s electronics workshop anytime soon, because it’s difficult to replicate the intricate network of suppliers, competent workers, efficient distribution systems and large home market that the country offers.