Jiwei Net News (Text/Kapok) Due to the impact of the Sino-US trade war, some foreign companies have plans to move their production lines out of China. There was just a rumor from Microsoft on the forefoot that the manufacturing business would not leave China, and then there was news that Nintendo confirmed that it would transfer part of the Switch game console production outside of China.
Today (9), a Japanese video game manufacturer spokesperson told Reuters, Nintendo Co., Ltd. plans to transfer part of its Switch game console production from China to Vietnam in order to diversify its production base.
This move will make Nintendo the latest company to transfer production out of China.
The spokesperson said that previously, Nintendo had outsourced almost all Switch game console production to contract manufacturers in China, and they planned to transfer some to Vietnam.
The spokesperson added that this shift is aimed at coping with the diversification of risks, rather than evading the impact of rising China-US trade tariffs.
In fact, as early as June, there was news that Nintendo would transfer part of the Switch game console production outside of China.
On June 12, according to Nintendo’s supply chain employees, Nintendo was shifting the production of some Switch video game consoles from China moved to Southeast Asia.
The Wall Street Journal reported that Kyoto-based Nintendo used to rely mainly on cooperationThe Chinese factory of the same assembly company manufactures video game hardware, including the Switch game console launched in 2017.
The company’s employees involved in the supply chain said that they have already produced the Switch in Southeast Asia factories, including the current model and two new models, and Nintendo is preparing to launch these games soon machine. Although no specific data was provided, the source said that when new products are launched, Nintendo hopes to have enough supply to sell in the largest video game console market in the United States.
According to the “Wall Street Journal” report in March, Nintendo plans to launch two new models this year. One looks similar to the current model and is an enhanced version of the game console; while the other is a cheaper game console with a different appearance.
A Nintendo spokesperson declined to comment on the new model, but in terms of Switch production, he said that game consoles are now mainly made in China, but the company has been Explore other locations for assembling products.
The Nikkei News reported last week that companies such as HP, Dell, Amazon, and Microsoft are considering “massively” moving production out of China.
Other Japanese companies hoping to transfer production from China include electronics manufacturer Sharp and copier manufacturer Ricoh. (Proofreading/Jurnan)