Apple Reportedly Considering Moving Up to 30% of Production Out of China to Diversify Supply Chain

With the U.S.-China trade war seemingly showing no signs of slowing down, a new report claims that Apple is getting serious about diversifying its supply chain in an effort to reduce its reliance on Chinese manufacturing.

iPhone disassembly robot Daisy

Specifically, Apple has asked several of its major suppliers to evaluate the cost implications of shifting 15 to 30 percent of their production capacity from China to Southeast Asia countries as it prepares for a “fundamental restructuring of its supply chain,” according to the Nikkei Asian Review.

Key iPhone assemblers Foxconn, Pegatron, Wistron, major MacBook maker Quanta Computer, iPad maker, Compal Electronics, and AirPods makers Inventec, Luxshare-ICT and Goertek all have been asked to evaluate options outside of China, multiple sources say. Many other Apple suppliers such as print circuit board and casing providers are closely monitoring where these major assemblers would shift their production.

The countries being considered for diversification include Mexico, India, Vietnam, Indonesia, and Malaysia, with India and Vietnam among the favorites for iPhone assembly, according to the report. Apple supplier Wistron already…