Foxconn to move some iPad and MacBook production to Vietnam

Fox conn Technology Group will move the manufacturing of some Apple Inc. iPads and MacBooks to Vietnam from China, a person familiar with the matter said, as the company aims to mitigate the risk that a trade war with the U.S. could continue after U. S. President Donald Trump leaves the White House.

The person asked not to be identified because the plans are still private. The company, whose formal name is Hon Hai Precision Industry Co., is building assembly lines for Apple’s tablet and notebook products at its plant in the northern Vietnamese province of Bac Giang, which will come online in the first half of 2021, Reuters reported earlier Thursday, citing an unidentified person familiar with the plan.

Apple didn’t immediately respond to an email seeking comment. Foxconn said in a statement it doesn’t comment on its work for specific customers.

Read more: Apple’s Shifting Supply Chain Creates Boomtowns in Rural Vietnam

During the Trump era, many manufacturers have been shifting production capacity from China to countries including Vietnam, Mexico and India to avoid being slapped with punitive tariffs and to hedge against geopolitical risks.

Apple’s par tners have ramped up iPhone production capacity in India, and companies that assemble AirPods have added some assembly lines in Vietnam.

Foxconn announced $270 million of new investments earlier this week, which a person familiar with the company’s operations said was for Vietnam.