A report from Bloomberg indicates that some Google hardware production is moving out of China to avoid any potential U.S. tariffs with the current trade war going on. Some of the products affected include Nest thermostats and Pixel devices.
Google has already shifted much of its production of U.S.-bound motherboards to Taiwan, averting a 25% tariff, said the people, asking not to be identified discussing internal matters.Bloomberg
Google is shifting server motherboards out of China because motherboards are categorized as printed circuit boards which are subject to 25% tariffs if they are imported to the U.S. but server racks as a whole have not been affected yet. Those server motherboards are a crucial part of the companies operations for computing hubs to offer search and productivity tools for cloud services among other things.
The reports state that Google is also moving the production of Nest devices to Malaysia and Taiwan.
Apple, on the other hand, who uses Foxconn’s Taiwanese facilities has stated that they have enough capacity to make all iPhones for the U.S. outside of China if it comes down to Apple not needing parts from China. On top of that, Wistron Corp., the company that makes servers for Microsoft and Facebook, are also looking to shift some production away from China but didn’t specify which products it would be moving.
Google also announced back in March that it’s creating a new campus in Taipei but there hasn’t been any word if it’s for a manufacturing plant or not.Source: bloomberg
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