Categories: NewsTech

Designed in California, Assembled in Malaysia: Apple considers device factory in Malaysia

Malaysia has been named as one of the potential locations for a new factory to assemble Apple devices, Nikkei Asian Review reported today. Apple is looking to reduce its production capacity in China by between 15 and 30% in a bid to shield itself from any potential impact from the ongoing trade war between the U.S. and China.

Besides Malaysia, Nikkei Asian Review reported sources as saying that Apple is also considering relocating its plants to other countries like Indonesia and Vietnam, as well as India and Mexico.

India and Vietnam were said to be among the favourites for the company’s smartphone diversification amid the U.S.-China trade tensions.

“The trade war has prompted Apple to seriously consider meaningful diversification for the first time.

“At the end of last year, the company began to expand its so-called capital expense studies team, according to sources familiar with the matter. The team of more than 30 people is discussing production plans with suppliers and governments over financial incentives they might be willing to offer to attract Apple manufacturing, as well as regulations and the local business environments,” Nikkei said in its report, citing various sources which it did not name.

According to the news report, main 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 their options outside China.

But no deadline has been set for the suppliers to finalise their business proposals, Nikkei reported, adding that it would take at least 18 months for production to resume after relocation due to the complexities and logistics involved.

China is a key market for Apple as well as a major production centre for its devices. The company gets about 18% of its total revenue from Greater China in the quarter ended March.

Malaysia is hoping to benefit from the ongoing trade war by providing a neutral and cheaper geographical venue for businesses from both the Western superpower and the Asian giant.

Finance Minister Lim Guan Eng said the fallout has boosted Malaysia’s investment by 73.4% year-on-year to RM29.3 billion in the first quarter of this year from RM16.9 billion a year ago, citing foreign direct investment data from the Malaysia Investment Development Authority.

Lim said RM11.5 billion came from the United States and RM4.4 billion from China. — Malay Mail

Recent Posts

Prime Minister’s Department: Over 1,500 cyberattacks launched at ministries’ infrastructure systems

There have been over 1,500 cases of cyberattacks launched against Malaysian ministries' infrastructure systems in…

1 hour ago

Malaysia’s largest DC charging hub is opening soon at Iskandar Puteri, Johor

DC Handal is expected to unveil what appears to be Malaysia's largest EV charging hub…

17 hours ago

Realme GT 7 Pro coming to Malaysia as first smartphone with Snapdragon 8 Elite chip, launching 18th November

Realme has debuted its latest flagship smartphone, the Realme GT 7 Pro in China, featuring…

17 hours ago

Malaysia to kill off NGVs in 2025 due to safety concerns

Malaysia will ban natural gas vehicles (NGVs) on 30 June 2025. Subsequently, no new natural…

18 hours ago

Is your iPhone 14 Plus having camera issues? Apple has a solution for you

Apple has launched a service program for the iPhone 14 Plus where certain units fail…

20 hours ago

U Family 128: U Mobile offers 1000GB shared data with 4 lines and free roaming for RM128/month

U Mobile has introduced its new U Family 128 offering, a new family plan which…

22 hours ago

This website uses cookies.