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Apple, Honda and Mazda to diversify manufacturing away from China

India, Japan and Vietnam better alternatives

Apple, Honda and Mazda to diversify manufacturing away from China - supply chain tribe by celerity
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Honda is considering building a parallel supply chain outside of China to lessen its dependence on the country. 40% of the carmaker’s production is currently done in China.

Fellow Japanese carmaker Mazda is also considering moving production out of China. Earlier this month, the company reported an operating loss of $115 million for the previous quarter due to production snags caused China’s COVID lockdowns. In response, the company said it would build stockpiles of components in Japan and look for new manufacturing outside of China.

Apple is also investing in manufacturing outside of China. The Cupertino, Calif.–based giant will start producing iPhones in India 2 months after the devices are first released in China. That news followed a report from last week that Vietnam suppliers will manufacture MacBooks and Apple Watches for the first time.