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Apple is reportedly in talks with suppliers to manufacture MacBooks in Thailand, a move that comes as the company continues to expand its supply chain outside of China. According to a report by Nikkei Asia, suppliers involved in the talks already have established bases in Thailand for other clients, which has facilitated discussions surrounding the possible assembly and production of MacBook components and modules in the country.
The report notes that Apple asked suppliers to set up facilities in Vietnam for MacBooks, following in the footsteps of other Apple suppliers. However, the suppliers offered an alternative option of building the product at their Thailand plants, which still have massive space that can be reserved for the client. As MacBook assembly will begin in Vietnam first, the suppliers could support the components from their Thailand plants too, which will only take two to three days of logistics and custom clearance.
One supplier told Nikkei that it is building new plants in Thailand for Apple, and construction of a new factory for MacBooks and other products will be completed this year. Apple has already been mass-producing its Apple Watch in Thailand for more than a year, according to the sources.
Apple has been expanding its supply chain beyond China over the past several years, with some production now occurring at factories in India and Vietnam. Apple industry analyst Ming-Chi Kuo has also said that the main production location outside of China for Apple’s future MacBooks may be Thailand. Such diversification helps Apple mitigate geopolitical tensions and avoid risks like US tariffs on Chinese imports.
This move is part of Apple’s strategy to reduce reliance on China as the US-China trade war and the COVID-19 pandemic have disrupted global supply chains. Diversifying production locations also helps the company manage potential supply chain risks and minimize the impact of any political or economic uncertainties.
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The COVID-19 pandemic has highlighted the importance of supply chain diversification, and companies like Apple are taking steps to reduce their dependence on a single country. While China will remain an important production hub for Apple, the company is looking to diversify its supply chain and reduce its dependence on any one country or region.
