tech2 News StaffJun 13, 2019 13:34:58 IST
After the US-China trade war, several US-based companies were left with no choice but to look for alternatives instead of doing business with Chinese companies. At present it's also hard to cannot deny the volatile relations between the two countries. While many manufacturers are looking for alternative routes (apart from China) to both source raw material and components, a new report shows how technology giant Google has been gradually moving its hardware manufacturing out of China.
According to a report by Bloomberg, Google is now moving its hardware production out of China to avoid tariffs that are as high as 25 percent. Production of motherboards has already moved to Taiwan whereas the manufacturing of Nest devices is being moved to Taiwan and Malaysia.
This move is clearly the response to the US-China tensions. Due to this, it is not just Google that has been planning such changes in manufacturing operations but other companies as well. Recently, Foxconn, one of the biggest iPhone assemblers, said that it is prepared to shift manufacturing outside China before the 25 percent tariff kicks in by the end of the month, reported The Verge.
As per the Bloomberg report, Chairman of Wistron Corp, a company that makes servers for Facebook and Microsoft, is also looking to move some part of its production out of China.
Huawei recently faced a push back from the US government. The Chinese company was banned from doing business with the US-based companies and was accused of using its equipment to spy. This resulted in a major setback to the brand. Google announced that it would no longer be able to provide Android updates to Huawei's smartphones. But has granted a temporary license that is valid until 19 August. After 19 August, the company will reconsider the license. A Huawei spokesman recently told a Reuters that the company will use HiSilicon products to substitute banned American components where possible.
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