Apple is expected to diversify the production of its MacBook Pro in China to avoid production delays in the future. The move will help the tech giant ensure that its production will run smoothly in one area if another sees disruption due to any reason.
10% of MacBook Air orders to be given to China-based Wingtech by Apple
According to Digitimes Research senior analyst Jim Hsiao, not only does Apple want to expand its supply chain outside of China, but it is also looking to diversify production in the region to multiple sites. The main reason for this move is that moving production to other countries could take many years.
The COVID-19 lockdowns had a significant impact on Apple’s shipments in the second quarter of 2022. In addition to this, the region’s power cuts have also negatively impacted Big Tech suppliers.
Digitimes reports that Quanta Computer, which produces around 60% of Apple’s MacBooks at its plant in Shanghai, is going to shift some of its production to its plants in Chongqing, western China. The supplier produces the 14.2- and 16.2-inch MacBook Pro and the 13.3-inch and 13.6-inch MacBook Air for Apple.
Another major Apple manufacturer, Foxconn, produces the remaining 40% of Apple’s Mac orders at its plant in Chengdu, western China. Foxconn is responsible for assembling the 13.3-inch MacBook Pro and the 13.3-inch MacBook Air. Following the COVID-19 lockdowns in China, Quanta’s orders were given to Foxconn as Quanta’s plant in Shanghai was affected by severe restrictions.
The analyst, citing his sources, goes on to reveal that in the second half of 2022, the Cupertino tech giant will shift orders from the 13.3-inch MacBook Air from Quanta and Foxconn to China-based Wingtech, which will assemble the device at its plant in Kunming, southwestern China.
Following this move, Quanta will be responsible for 55% of MacBook shipments, Foxconn will be responsible for 35%, and Wingtech will make up 10%.
In related news, Foxconn will be building a new $270 million plant in Vietnam. The expansion is part tech giant’s plan to expand its iPad and MacBook production lines outside of China. It is expected that the plant will be able to produce eight million laptops and tablets annually.