The escalating US-China trade war is sending IT firms moving their manufacturing operations from China to avoid the tariffs imposed on Chinese products. But plant relocation is much easier said than done, as it is a complicated process involving the entire supply chain from the upstream to the downstream apart from the necessary expenses. Today's reports offer insights into the difficulties for relocation and some latest developments at Wistron and Catcher.
Trade war to impose 3 major challenges for production relocation: The US-China trade war is disrupting IT supply chains and presenting three major challenges to makers trying to move production lines from China - difficulty in building complete logistics systems, a lack of assembly line and management personnel, and increase in operating cost.
Wistron looking to set up pilot line in US; Catcher eyeing Southeast Asia or Taiwan for new plant: Wistron chairman has disclosed that the ODM is looking to set up a pilot line in the US as a backup to its manufacturing facilities in Mexico. Meanwhile chassis maker Catcher is planning to establish a new plant either in Taiwan or Southeast Asia.