Tariffs between the United States and China generate migration in the hardware industry.
Google is changing the origin of some of its products from China to Taiwan.
Foxconn told Apple that she was ready to migrate the iPhone assembly if necessary.
Donald Trump's tariffs force US companies to change the productive focus: from mainland China to other destinations.
Apple, for example, is ready to develop "Plan T", so Foxconn, the largest assembler on your iPhone, performs your tasks in the factories of Taiwan, freed from the tariffs arising from the trade war between the two great powers.
Such a move is being undertaken alphabet, owner of the company Google, which will move Nest's thermostat and server hardware production outside of China, thus avoiding tariffs and, at the same time, increasingly hostile government in Beijing, according to Bloomberg.
This is not Google's first decision in this regard: Taiwanese part of the motherboard industry has already been transferred to Taiwan which are intended for the United States, while avoiding the 25% tariff applicable to these products.
Migration takes place when foreign and Chinese companies are trying to move their production from the Asian giant.
This is, on the one hand, that the tariffs remain for longer than originally expected. On the other hand, Beijing shows negative signs for big American companies – from Ford to FedEx. This is an anticipated reflection that matches what Trump does with Huawei.
Given this new scenario, US companies, who for years have used to using China as their cheap labor factories, are studying alternatives.
Ready to change
As we explained in Merca2.0, Foxconn has already told Apple that it has enough capacity to make the entire iPhone that goes to the US. can be done in Taiwan, in factories outside of China.
Although Google's hardware production in China is very insignificant, if it is bought with the millions of iPhone that Apple makes in the Asian giant, the change can declare a wider trend that would reach other companies.
In resolving this, Google urges the US government to allow it to continue to supply the Huawei Android operating system, although the Chinese brand is on the Trump black list, the Financial Times reported.
In this regard, Google warned Trump's administration of risking to compromise US national security if it continued with the restrictions on Huawei trade.
Android version, modified by Huawei, claims Google, could be more vulnerable to the risks of piracy.
Google says that avoiding the exchange with Huawei, the US risks creating two types Android OS: the original version and the hybrid version.
In this way, the hybrid is likely to have more mistakes so he can expose Huawei's phones higher risk to be pirated, not only from China.