Taiwanese electronics manufacturer Pegatron, which is a supplier for Apple and Samsung is reportedly planning to construct a Manufacturing facility in the north of Vietnam to make styluses for Samsung smartphones.
In 2019, Pegatron announced the establishment of Manufacturing operations in the Batamindo Industrial Park in Batam, Riau Islands in Indonesia to make internet connectivity devices. Pegatron is third iPhone assembler after Wistron Corp and Hon Hai Precision Industry to develop Manufacturing facilities or build extra capacity in Vietnam. However, none of them have any plans to make iPhones in the country. Chinese acoustic components company, GoerTek is Manufacturing AirPods, Apple’s wireless earphones in Vietnam. Two other Apple supply chain partners, Compal Electronics and Luxshare Precision Industry also have a presence in Vietnam.
Due to the US-China trade war, electronics supply chain players are looking to diversify their operations beyond China. South East Asian countries are one of the key options these companies are considering. The trend continues though the US and China have signed a phase-one trade deal, as tensions are expected to continue and labor costs in China are rising.
(Sources: Business Times; Nikkei Asian Review; Bloomberg; Jakarta Post)