Apple awards 2 Taiwanese companies with orders due to defect in China’s supply chain

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Apple is one of the biggest smartphone manufacturers in the world and it is the biggest company in the US. However, we know that Apple does not make its own iPhones and other products. Instead, Apple relies on Taiwan’s Foxconn to manufacture iPhones for them which they then import to the US and sell in the country. However, we know that Apple imports its iPhones from China instead of Taiwan but the recent trade war between the US and China has hurt them. For this reason, Apple is looking to move its production of iPhones away from China.

Now, a new issue has been seen in China’s “red supply chain” which has seen high defect rates and low yield rates. For this reason, it is seen that production disruption in the iPhones took place. And now Apple has said that enough is enough regarding the issues. This is because the company has now awarded 2 Taiwanese companies with orders for the new iPhones. Since Apple is also looking to ramp up production of its iPhones, it has given orders for the new iPhone 11 and 5G iPhones to the Taiwanese manufacturers.

This switch in Apple’s manufacturing is regarding the Chinese Printed Circuit Board (PCB) supplier Suzhou Dongshan Precision Manufacturing Co., Ltd, and the company has now gone in favour of Taiwan rivals Zhen Ding Technology Co., Ltd. Now, we have seen that China’s “red supply chain” is blamed by the companies in Taiwan for snatching away orders of Apple iPhones from them. However, the defects in this supply chain have meant that Apple is forced to move away from them. Flexium says that it has a positive outlook and does reveal that the new market demand means that production in the first quarter of next year will be “a bit busier than usual,”

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