Bitter trade relations between the United States and China force contract manufacturers to explore opportunities outside China.
In a fresh revelation from DigiTimes, Wistron and Catcher are looking for plant locations outside China. While the former is planning to set up a factory in the United States or Mexico, the latter is mulling Southeast Asia or Taiwan as potential locations.
Wistron Plans a Unit in US or Mexico; Catcher Mulls Southeast Asia or Taiwan
Catcher is a chassis maker, which is worried about worsening trade relations between the two giant economies of the world. Notably, Wistron and Catcher are Apple’s regular contract suppliers.
Wistron has already begun to expand its manufacturing units in locations outside China. The company has an iPhone manufacturing unit in Bangalore, India.
Wistron is likely to follow Foxconn in its attempt to launch a manufacturing unit in the US. Foxconn, which faces some issues in the US, is working to build a 13000-worker factory in Wisconsin.
Apart from Wistron and Catcher, there are other suppliers, who are scouting locations outside China. For example, Pegatron is planning to shift its iPad and MacBook production out of China. Of late, Foxconn released a statement that it can fully support Apple if US-China trade ties intensify.
The trade war between the US and China is not the only reason why Apple suppliers are moving out of China. However, this can be a main fear among the manufacturers. Many industry insiders have reported that Apple products can become expensive following high tariffs on imported Chinese goods.
To remove the tag of high price from its products, Apple can take extreme measures, and the iPhone maker is likely to invest its money in other places, where production cost does not go high. Suppliers like Wistron and Catcher do not want to lose a client like Apple, which has once (recently) achieved the status of a trillion-dollar company.
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