American companies Microsoft and Google intend to accelerate the process of transferring production facilities used to create smartphones, computers and other devices from China to Southeast Asia due to the outbreak of the coronavirus. The companies are expected to use factories in Vietnam and Thailand to manufacture new products.
The report says that Google will begin production of its new smartphone, expected to be called the Pixel 4A, at a plant in northern Vietnam in April. It is also assumed that the new flagship smartphone Google Pixel 5, which should appear in the second half of this year, will be produced at a factory located in one of the countries of Southeast Asia. As for Google's smart home products, such as voice-enabled smart speakers, they will be built at one of the US company's partners in Thailand.
Microsoft, which started in the computer hardware business in 2012, plans to start manufacturing Surface devices, including laptops and desktops, in northern Vietnam. The start of production should take place in the second quarter of this year.
Until now, most, if not all, Google smartphones and Microsoft computers have been made in China. The trade war between the US and China has forced tech companies to assess the risks of over-reliance on manufacturing from the Middle Kingdom. The recent coronavirus outbreak has only spurred manufacturers to reschedule production, as they have considered doing so before.
βThe unexpected impact of the coronavirus will definitely push electronics manufacturers to further seek manufacturing capacity outside of their most profitable manufacturing base in China. This is more than just cost - it is about the continuity of supply chain management, βa knowledgeable source commented on the situation.
Source: 3dnews.ru