The last year has been challenging for Chinese smartphone makers now looking for alternative supply chains and manufacturing techniques.
To increase production despite continued supply chain challenges brought on by the COVID-19 outbreak, companies including Xiaomi, Samsung, and Apple have moved manufacturing to Vietnam.
The first batch of smartphones made at the Xiaomi factory is apparently on their way to Malaysia and Thailand.
Global Times reports that Xiaomi’s new manufacturing facility in Vietnam has already shipped its first batch of smartphones. Now, the firm is concentrating on Vietnam.
The brand-new structure, which measures 200,000 square meters and costs $80 million (or about Rs. 634 crores), is located in North Vietnam. DBG Technology, based in Hong Kong, is tasked with manufacturing.
Xiaomi wants to utilize its new factory in Vietnam as a hub for exports to other Southeast Asian countries nearby, such as Malaysia and Thailand. According to GSM Arena, Xiaomi has a market share of 22% in Vietnam, which is only topped by Samsung (34%).
There are further Xiaomi production plants in China and India.
It’s not only Xiaomi that wants to increase manufacturing outside of China. Due to ongoing supply chain issues, Apple transferred some iPad manufacturers to Vietnam last month. This was the first time the Cupertino corporation moved iPad model manufacturing outside China. One of the main reasons Apple relocated the production of its iPads to Vietnam was to get over the limitations imposed by the stringent COVID-19 lockdowns in Shanghai and other cities throughout the nation.
The largest manufacturer of smartphones in South Korea, Samsung, has already moved a significant portion of its manufacturing to Vietnam, where it now produces over 50% of its devices with little impact on the market. A tiny fraction of its overall production comes from its Gumi facility in South Korea, which was temporarily shut down during the pandemic in 2020.