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Tim Culpan

Technology Companies Have a Road Out of China

It has been challenging for hardware makers to reduce their reliance on the world’s production hub. Electric vehicles may be the key.

Moving things around.

Moving things around.

Photographer: Nora Tam/South China Morning Post/Getty Images

Global electronics suppliers looking to diversify their manufacturing footprint beyond China are taking advantage of growing demand for sophisticated components used in electric vehicles to shift production closer to their customers overseas. It’s a smart move that could allay fears that the supply chain is too dependent on one location amid shortages and geopolitical tensions.

New corporate clients, a need to tailor vehicles to local markets and a willingness among some governments to subsidize the costs of setting up factories have turned electric vehicles into a catalyst for companies to expand capacity around the world.