Major Taiwanese news media EBC recently reported that primary Apple Taiwanese suppliers, namely the “Seven Indicator Manufacturers” – Pegatron, Compal, Wistron, Flexium, Unimicron, Merry, and Catcher – are all lowering their ratio of dependency on Mainland Chinese factories. The manufacturing power is shifting to Southeast Asia. The key suppliers are currently working on overcoming a lack of skilled labor, establishing new factory locations, and coordinating with upstream material suppliers. For years these companies have been suffering from the Mainland’s labor shortage, from increasing labor costs, and from tougher environmental protection regulations. Now the US-China trade war has added significant weight to their decision making. The “Seven Indicators” cover a wide range of Apple product manufacturing components. Experts see the fact that all seven are moving out of the Mainland at the same time as a “historic move.” There have been many challenges in moving manufacturing out of China to foreign countries. The primary issue is that China has a massive talent pool full of hard-working people.
Source: EBC, November 11, 2018