GOOGLE is moving production of its Nest thermostats and server hardware out of China, aiming to avoid the punitive US tariffs of 25 per cent that have been placed on Chinese products, Caixin reports.
Google has already shifted much of its production of US-bound motherboards to Taiwan, said Caixin sources. Tariffs have pushed American-bound production of its Nest devices to Taiwan and Malaysia, the sources added.
The migration is taking place as companies both foreign and domestic seek to pivot their production away from China amid US efforts to reset the perimeters for global trade and manufacturing.
The Taiwanese contract manufacturer Foxconn Technology Group, which makes most of the world's electronics including Apple Inc's products, have since 2018 accelerated the shift at their clients' behest.
Foxconn said it has enough capacity to make all iPhones bound for the US outside China if necessary, although Apple has so far not asked for such a shift.