Vietnam’s automaker VinFast on said it will push back its plan to start operations of its electric vehicles factory in the United States until 2025, citing a procedural delay.
China Holds Emergency Talks With Chip Firms After U.S. Curbs
China’s Ministry of Industry and Information Technology convened a series of emergency meetings over the past week with leading semiconductor companies, seeking to assess the damage from the U.S. chip restrictions, Bloomberg News reported.
US Tech Curbs On China Will Affect Singapore’s Semiconductor Sector: MTI
New restrictions on China’s access to cutting-edge American technology will hit Singapore’s semiconductor industry, but measures are in train to offset the impact, said Minister of State for Trade and Industry Alvin Tan.
US Chips Act Serves No One
US President Joe Biden signed the CHIPS and Science Act into law on Tuesday with the aim of stimulating the country’s semiconductor industry and maintaining its technological supremacy (albeit with doubts).
SK Hynix To Break Ground On New U.S. Chip Packaging Plant Early 2023
South Korea’s SK Hynix aims to select a U.S. site for its advanced chip packaging plant and break ground there around the first quarter of next year, two people familiar with the matter said, helping the United States to compete as China pours money into the burgeoning sector.
Ford To Buy Cheaper CATL EV Batteries To Catch Tesla
Ford Motor Co (F.N) on said it will import lower-cost lithium iron batteries for its North American electric pickup trucks and SUVs from Chinese battery champion CATL (300750.SZ), as it works on a broader alliance with CATL and an array of separate deals to secure battery and battery materials into the next decade.
Panasonic To Build US$4 billion EV Battery Plant For Tesla In U.S.
High-capacity 4680 cells to help Japan maker compete with China, South Korea.
Trade War Pushes Apple’s Manufacturing From China To Vietnam
The ongoing trade war between the U.S. and China has disrupted global supply chains and pushed smartphone production to Southeast Asia. According to the Nikkei Asian Review, GoerTek has already announced its intention to shift production of Apple’s wireless earphones from China to Vietnam to evade tariffs and political tensions, with the company kickstarting the process by seeking input from its suppliers on the feasibility of shipping the necessary materials and parts for Apple’s AirPods directly to Vietnam. Although further discussions with Apple is still required to finalise this decision, GoerTek currently already has a production facility in northern Vietnam which produces wired headsets for iPhones.
Apple products such as AirPods, the Apple Watch and the smart speaker, HomePod, have been exempted in initial tariffs involving US$200 billion worth of Chinese goods, however, Trump has already threatened to impose tariffs on an additional US$267 billion worth of products from China in the near future. This would mean that the value of Chinese products that would be impacted by tariffs will reach US$517, and this would exceed the value of Chinese imports to the U.S. in 2017 that were worth US$505 billion.
Meanwhile, Cheng Uei, a supplier for Apple’s and Andriod’s chargers and connectors has commented that it is also considering shifting production back to Taiwan as well as Southeast Asian countries such as Thailand, Vietnam and the Philippines due to the trade war. Although this process also invites its own set of challenges, as Chairman T.C. Gou has elaborated that leaving China will mean the disruption of established supply chain networks and Chinese tax incentives and investment policies.
As of now, China constitutes Apple’s most important manufacturing base and functions as an important consumer market for the brand with sales from the country representing 20 percent of the company’s annual revenue.
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