Apple suppliers added manufacturing operations near the California-based tech company in fiscal year 2021, a sign of how quixotic responses to COVID-19 in various countries, notably China, and geopolitics are reshaping and diversifying supply chains.
Yang Jie for the Wall Street Journal:
Of Apple’s 180-plus suppliers, 48 had manufacturing sites in the United States in September 2021, up from 25 a year earlier, according to a list of suppliers published by Apple. More than 30 sites were in California, compared to less than 10 a year earlier.
Many major suppliers such as chip makers Qualcomm Inc. and Taiwan Semiconductor Manufacturing Co., product assembler Foxconn Technology Group, and image sensor supplier Sony Group Corp., have added manufacturing sites in the United States during the year. year, the list shows …
The journey between California and China has been difficult since early 2020 due to Chinese restrictions linked to Covid-19. During the pandemic, Apple relied more on local engineers in foreign countries and adopted technologies such as live streaming to help headquarters staff remotely follow what is happening at the factory. However, vendor officials said there were still occasions when it was helpful to be close to Apple’s headquarters, especially when testing materials and parts for new products were involved.
California’s moves by Apple’s suppliers are part of a broader transition in its supply chain. Apple has told some of its manufacturing partners that it wants them to increase production outside of China, with Vietnam and India among the countries taking a closer look.
MacDailyNews takes: The more you can do to increase diversification and promote competition, the better.
Apple’s 2021 supplier list is here.
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