Apple, TSMC, Mazda Shift Supply Chains out of China

Major companies Apple, TSMC, and Mazda are diversifying their supply chains away from China due to geopolitical tensions and COVID-19 impacts.

Apple, TSMC, Mazda Shift Supply Chains out of China
Photo by Laurenz Heymann / Unsplash

Supply Chain Shift for Major Companies

For over 40 years, China has been the manufacturing hub for many global companies. However, due to trade tensions and COVID-19 disruptions, firms are now shifting their supply chains. Among these are tech giant Apple, leading chipmaker TSMC, and Japanese carmaker Mazda.

Apple's Partial Diversification

Apple's production was significantly affected by China's strict COVID lockdowns. In response, the company began moving iPhone production to India and explored similar actions for the iPad. Despite this, the Vision Pro mixed reality headset still involves Chinese suppliers, indicating Apple's continued reliance on the country's manufacturing capabilities.

TSMC's Investment in the US

TSMC is another company looking to diversify its operations outside China. Although not completely abandoning China, the company has announced a significant $40 billion investment in a second factory in Arizona, USA. Despite cost considerations, the move is partially funded by the US government to boost local semiconductor chip production.

Mazda's Return to Japan

Mazda, a Japanese car manufacturer, has also taken steps to reduce its dependence on Chinese suppliers. The company is asking parts suppliers to manufacture outside China and is increasing stockpiles in Japan. This shift aims to ensure robustness and stable procurement within the company's supply chain.

This is a summary of a story reported by Business Insider.

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