Apple is actively working to reduce its reliance on China by shifting its business and awarding contracts to companies in countries with lower costs and fewer geopolitical risks, such as Vietnam and India. Quanta Computer, the primary manufacturer of Apple’s MacBook, recently signed an agreement to establish its first factory in Vietnam.
This strategic shift has been in the works for years, driven by increasing labor costs in China and the ongoing technology disputes between the US and China. Vietnam has experienced steady growth in foreign direct investment, with Quanta’s decision to open a plant there serving as a prime example of American companies’ efforts to decrease their dependence on China. Taiwanese companies have also significantly increased their investments in Vietnam.
Apple’s investment in India has seen substantial growth as well. Foxconn, the company responsible for assembling iPhones, has established a plant in Chennai and is planning to set up additional facilities in Karnataka and Telangana. Trendforce projects that by 2028, 30-35% of iPhone production will take place outside of China.