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Trump's Tariffs Push Electronics From China to Southeast Asia

  • Taiwan’s producers are quickening moves toward cheaper places
  • Much will depend on how U.S.-China trade tensions play out
Manufacturing at a KCE Electronics Factory and Interview with CEO Pitharn Ongkosit
Photographer: Brent Lewin/Bloomberg

Electronics makers are preparing to shift more production to Southeast Asia as trade tensions with the U.S. make it less appealing to manufacture gadgets in China.

A number of Taiwanese firms that form a crucial plank of the global supply chain have in recent days signaled their intention to diversify away from the world’s No. 2 economy. Delta Electronics Inc., which supplies power components to Apple Inc., said Tuesday it’s making a $2.14 billion offer to buy out a Thai affiliate -- a precursor to expanding production there. Merry Electronics Co., which makes headphones for the likes of Bose, said it may move some of its production to the same country from southern China, depending on how the trade conflict pans out.