AfterDawn: Tech news

Tech companies are moving manufacturing out of China to avoid tariffs

Written by Matti Robinson @ 13 Jun 2019 11:36

Tech companies are moving manufacturing out of China to avoid tariffs

After Hon Hai Precision, better known as Foxconn, assured investors that iPhones could be assembled outside the China if needed, others are following suit.
According to Wall Street Journal, Nintendo has started producing their next-generation game console, two of them to be exact. This means the dual successor to highly successful Nintendo Switch is just around the corner.

It also means that current trade issues between China and the U.S. might really affect where and how it is manufactured and shipped.

Nintendo is reportedly ready for the effects the trade war might have with their products, and has already moved some of the manufacturing out of China. This will allow them to avoid profit killing tariffs.



While officially Nintendo hasn't commented on this, they do say that majority of Switch manufacturing is located in China.

Not only is Nintendo avoiding China but, according to Bloomberg, Google is moving some of its production out of the country. Google's smart home division Nest is manufacturing more of the devices in Taiwan and Malaysia.

Furthermore motherboards made for Google's server farms are now manufactured in Taiwan instead of China.

Trump's Treasure Secretary Steven Mnuchin recently revealed that if the negotiations with China go well, Huawei blacklist might be eased. Naturally a result like that would likely lift some tariffs.

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