© nest__labs_celsius_cooling Electronics Production | June 14, 2019
Google moving hardware production out of China
Alphabet Inc.’s Google is moving production of Nest thermostats and server hardware out of China, avoiding punitive U.S. tariffs and an increasingly hostile government in Beijing, Bloomberg is reporting.
Google has already shifted much of its production of U.S.-bound motherboards to Taiwan to avoid the tariff, according to Bloomberg’s unnamed sources, who asked to remain anonymous. While U.S. officials have identified Chinese-made motherboards as a security risk, Google didn’t bring that up during discussions with its suppliers, the sources said. Both foreign and domestic companies are trying to pivot their production away from China amid U.S. President Donald Trump’s efforts to reset the parameters for global trade and manufacturing. Beijing is showing growing signs also of clamping down on American corporations, including Ford Motor Co. and FedEx within the world’s largest consumer market and production base. U.S. companies that have grown accustomed to using China as the world’s workshop, are exploring alternatives. Taiwanese contract manufacturers such as Foxconn, which makes a significant share of the world’s electronics for customers like Apple Inc., have been ramping up the shift since last year. Foxconn said on Tuesday that it has enough capacity to make all iPhones bound for the U.S. outside of China if necessary, although Apple has so far not asked made the request, according to Bloomberg sources.