A new report by DigiTimes indicates that laptop manufacturers are already facing trouble in relocating their factories from China to other countries such as the US and Vietnam.
The mutual economic sanctions between the United States and China have negatively affected the semiconductor industry and component manufacturers around the world, as there is a clear trend to move these factories from China to other regions outside China’s control.
The problem is that the process of moving a production line from one location to another cannot be accomplished in a short period of time because manufacturers have to take into account huge infrastructure costs, which can reach tens of billions of dollars, until the facility is set up. Ready ready. Suitable for mass production.
Another important problem is contracts concluded with customers of other companies that require timely delivery of products within a certain time frame, as this contract is bypassed and goes to another factory to fulfill these orders without taking into account the volume of production and the quantity of completion. Not possible.
The biggest problem is that large companies like Dell are under great pressure to quickly move their huge production lines in China to other countries such as Vietnam.
The figures show that production is lower than expected due to quality problems in the mass production stage of Vietnamese factories, including inexperienced workers, poor logistics and a declining supply chain, meaning Vietnam still needs more money. It is time to enable mass production. Independence from China.
Dell manufactures high-end desktops and laptops at its manufacturing facility in Texas, but continues to rely heavily on its extensive production lines in China, Brazil, Taiwan and Malaysia for other products.
The problems of laptop manufacturers will not be solved by simply moving their factories to other countries instead of China, because the scarce raw materials and materials supplied from China to foreign manufacturers at low prices will not be as available as before, which means that there is no longer any pain. And high prices. It is true that it is obviously the increase in work on semiconductors in the West, but also trying to ensure the supply of all raw materials so that the main production lines are not under the control of China and can continue to work without interruption.
This is a step that is happening now and will happen frequently in the future. Every time we hear about the transfer of industrial factories from China to another country, and with every reaction we see more problems and suffering, as they say.