TAIPEI – Pegatron and EMS firm Qisda are opening new factories in Vietnam, according to reports. Pegatron will rent a plant that will begin production in early 2021, and Qisda is constructing a new factory.

Both firms are expanding capacity outside China, with Pegatron moving its fabrication capability. Pegatron and Qisda’s decision to move outside China is a result of the US-China trade war, according to reports. Pegatron also wants to start manufacturing in India.

Pegatron, an Apple supplier, expects to increase its non-China production ratio to 10 to 20% by 2021. The firm currently has most of its factories in China, leaving it vulnerable to tariffs and sanctions.

Meanwhile, Wistron earmarked $1 billion to build new factories in several locations, including Vietnam. Apple reportedly asked partners to contemplate moving 15 to 30% of their supply chains to Southeast Asia last year.

India and Taiwan also launched new incentive programs to attract foreign component makers.

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