Thursday, August 9th 2018
Taiwan ODMs Pulling Back Production from Mainland in Wake of US Import Tariffs
You could see more "Made in Taiwan" and lesser "Made in China" on the shelves of your friendly neighborhood Microcenter, as major Taiwanese original device manufacturers (ODMs) are considering moving manufacturing back from Mainland China to Taiwan. ODMs are contract manufacturers of PC hardware, which take designs from [mostly western] electronics companies, and turn them into marketable product.
Among the first such ODMs is Quanta Computer, which manufactures some components in Shanghai, with server assembly either in Fremont, California; or just outside Cologne, Germany. The move is triggered by harsh import tariffs imposed by the Trump Administration on imports of electronics goods from China (PRC), running up to 25 percent, as part of the ongoing trade-war between the world's top-two economies. Tech stocks are rattled at the prospect of cheap hardware imports getting significantly pricier for American consumers.
Source:
DigiTimes
Among the first such ODMs is Quanta Computer, which manufactures some components in Shanghai, with server assembly either in Fremont, California; or just outside Cologne, Germany. The move is triggered by harsh import tariffs imposed by the Trump Administration on imports of electronics goods from China (PRC), running up to 25 percent, as part of the ongoing trade-war between the world's top-two economies. Tech stocks are rattled at the prospect of cheap hardware imports getting significantly pricier for American consumers.
34 Comments on Taiwan ODMs Pulling Back Production from Mainland in Wake of US Import Tariffs
The new places are Indonesia, Vietnam and maybe the Philippines. After that, Cambodia and Laos.
It's essentially China's original government in exile.
You get what you pay for, largely. That will never change. You think tarriffs will magically make quality cheap? No, not at all. I did, not you.
There's obviously some electronics industry in Brazil, but it's not cheap to manufacture there, it's simply done due to the insane import duties imposed by the government.
Not many of them might be leading edge, but that's more to do with the
state sponsoredcorporate espionage than anything else.en.wikipedia.org/wiki/List_of_semiconductor_fabrication_plants
Yeah that's why I said "not" leading edge, which is different from high end because GF's 22nm FDX is high end. Need to brush up on your English? Is that what you call kissing China's whatever :rolleyes:
I could easily see Taiwan and Hong Kong being added to the tariffs in time. Their currency is based on the Yuan which is being unlawfully pegged to USD. As such, as much reason to sanction Taiwan and Hong Kong as China.
And no, the New Taiwan Dollar is not pegged to the Yuan, it's pegged to the US Dollar. You clearly have very little understanding of the politics between Taiwan and China. The current government in Taiwan will do almost anything to distance itself from China and the current situation between China and the US.
Literally a few minutes old: China paper rebuts trade war criticism, says 'an elephant can't hide' The tariffs are working. They're attempting to use propaganda to vilify the USA while internally, they fight.
I don't disagree that China needed a good slap, maybe even a good spanking, as they've done a lot of nasty things simply to win market share. However, if American and other foreign companies, including Taiwanese, weren't so eager to do business with/in China, would we even be in the situation we're in today?
edit:
I'm not well versed enough to make a proper critique of Free Market capitalism, but I understand the revolt against it.. It's not like it doesn't have some serious downsides. And so far, it doesn't seem like Trump's protectionism isn't quite as disastrous as has been warned. Perhaps it will fail, but it's suspect that it isn't given much of a chance... going on 200 years now (perhaps longer?). It's not like this hurts in some blanket sort of way anyhow. Trump just puts emphasis more on unilateral dealing.