COVID-19 Delays Big Tech From Moving Production Out Of China

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COVID-19 has forced the government to tighten border controls, ultimately delaying Apple and Google’s plans to pull production out of China.

Technology companies had initially considered moving production out of the country because of deteriorating trade relations between the U.S. and China and partly to avoid dependence on one source.

The ongoing pandemic means that there is now a restriction on intermittent travel and stricter controls, which thus serves as an obstacle to the plans of popular technology companies such as Apple, Google, Amazon, and others.

Apple’s plans to mass-produce AirPods and AirPodsPro in Vietnam have stalled because of strict restrictions on border control, meaning the company must continue to produce in China.

To clarify the story, a supply chain executive explained to Nikkei Asia, “[Vietnam’s] engineering workforce is still far from adequate. With all the travel restrictions, it’s only feasible to make products in Vietnam that are already in mass production elsewhere, rather than starting production of upcoming products from scratch in the country.”

For more information, read the original story in Apple Insider.


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