[News] Trump’s 20% Vietnam Tariff Shakeup: Foxconn and Key Taiwanese Tech Firms’ Moves and Impact

With the Trump administration locking in a 20% tariff on Vietnam, Taiwan’s tech sector is breathing a bit easier, as the country has emerged as a key alternative to China—now home to assembly lines for laptops, wearables, networking gear, and smartphones, according to the Economic Daily News.

But as Commercial Times points out, the 20% rate is higher than many had expected—sparking fresh concerns for the PC supply chain, as rising production costs could eventually drive up consumer prices. Here’s how key Taiwanese tech firms are expanding in Vietnam and what the potential impact of tariff changes.

Foxconn: Apple Products, AI Servers, and Semiconductor Presence

Economic Daily News suggests that Vietnam has become a major hub for Taiwan’s southbound tech expansion, with Foxconn, Pegatron, Compal, Wistron, and Quanta all setting up operations there. Among them, Foxconn’s Vietnam operations focus on assembling Apple products like iPads, MacBooks, AirPods, and Apple Watches, along with AI servers.

It is also worth noting that Foxconn-linked ShunSin—the only Taiwanese packaging and testing firm with capacity in Vietnam—is poised to ramp up shipments as geopolitical risks ease, the Economic Daily News reports. ShunSin runs three Vietnam plants, supplying fiber optic and SiP products to clients including Broadcom, the report adds.

Pegatron: Consumer Electronics

On the other hand, the Economic Daily News notes that Pegatron mainly produces consumer electronics in Vietnam, such as Microsoft Surface devices and Xbox consoles. Company executives say any shift in production due to tariff changes will depend on client discussions, as per the report.

PC Supply Chain: Challenges Ahead for ODMs

According to Commercial Times, Taiwanese ODMs have set up laptop assembly lines in Vietnam, supplying U.S.-bound products for major brands like Apple, HP, Dell, and Acer.

Supply chain insiders cited by the report say a wide range of consumer electronics could face further price increases. Earlier this year, higher logistics costs already pushed up FOB (free-on-board) prices slightly. Now, with new tariffs and currency fluctuations, both manufacturers’ suggested retail prices (MSRPs) and actual retail prices may rise again, Commercial Times warns.

However, with the U.S. yet to clarify how it will define “Chinese-origin goods rerouted through Vietnam,” and with the 25% Section 301 tariff on Chinese imports still under exemption until August 31, Commercial Times suggests that Taiwanese ODMs don’t expect major changes to current production plans in the short term.

As per the Economic Daily News, Compal runs three factories in Vietnam, producing laptops for Dell as well as networking gear and smart devices. Vietnam now stands as its second-largest laptop manufacturing hub after China, the report says.

On the other hand, the report also notes that Wistron’s Vietnam operations support Dell’s laptop production. Its first-phase plant builds monitors, laptops, desktops, and servers, while a second-phase facility came online this January.

Quanta was the last of Taiwan’s major electronics manufacturers to establish a presence in Vietnam, according to the Economic Daily News. Its new plant began mass production in the second half of 2024, mainly to meet Apple’s demand for MacBook assembly, the report adds.

Read more

• [News] NVIDIA Plans $500 billion AI Investment in U.S., with Taiwan’s TSMC and Foxconn Leading the Charge

(Photo credit: Foxconn)