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Network Equipment Suppliers transfer production from China

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The DigiTimes resource reports that Taiwanese network equipment collectors continue to transfer lines to produce their products from China to other regions. Until recently, manufacturers of network devices were beneficial to place production in the PRC. However, the trading war, aggravated between China and the United States in 2018, made its own adjustments to the current business model.

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In addition to Taiwan, the preferred region for placing productions for companies like Gemtek, Wistron Newb Corporation (WNC), Arcadyan and Hitron is Vietnam. For example, WNC and Arcadyan intend to deploy additional assembly sites in addition to existing – these enterprises will earn in the second half of this year.

The WNC reported that the second production platform of the company in Vietnam is already ready for 90%. The release of network equipment on it is planned to be organized in the next quarter. Arcadyan also prepares new production lines in Vietnam, but they will earn a little later – in the last quarter of this year.

It is also said that even a new wave of propagation of coronavirus infection does not interfere with the transition of network equipment from China to other regions. It is possible that the observed picture will lead to certain changes in the global network of network devices. Similar processes occurred on the server market. HPE, for example, even launched an assembly of servers in the United States for especially demanding customers.

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