The reason for such changes is the geopolitical situation and the coronavirus pandemic. The fact is that the US conflict with China is only growing and every moment threatens to disrupt plans due to new sanctions against China. In addition, Beijing is known for its strict measures against covid, which causes disruptions in the supply chain due to constant quarantines.

Where will production move to?

The most attractive place to move to today is Vietnam, where manufacturers own quite a few factories. For example, Apple partially moved production of AirPods, Apple Watch and iPad there. Of the company’s 200 largest contractors, 20 are owned by Vietnamese entities.

All Western companies are considering leaving China, although not all of them have taken action.
– says Anna-Katrina Shedlecki, founder of Instrumental, which remotely monitors assembly lines for electronics manufacturers.

As The New York Times noted, some of Apple’s new iPhone 14 will already be manufactured in India, and some of Google’s Pixel 7 will be manufactured in Vietnam. At the same time, the publication does not name specific factories. It could be the same Taiwanese Foxconn company that has factories or some local factories in China and Vietnam.

The transition will take some time, and other industries are likely to follow suit. However, for now, China remains the dominant producer of consumer electronics.