Google relocates the production of US-bound Nest devices and server hardware from China to avoid rates of as much as 25 percent, reports Bloomberg. Motherboard production on the way to Google's US data centers has moved to Taiwan, while Nest devices under Stateside are now being produced in Taiwan and Malaysia. The movements are a reaction to the increasing tensions caused by the American-Chinese trade war.
The shift in geographic regions should support Google's bottom line. The rates must either be absorbed directly by the companies or passed on to the consumer in the form of higher prices. Many companies now selling to the US are considering moving at least part of their production from China, disrupting a complex global supply chain network that is as old as & # 39; iPod cities & # 39 ;
The production shift is because tensions are increasing in a continuous trade war between the US and China. Yesterday, Foxconn said it was willing to relocate the production of US-bound iPhones outside of China before rates of as much as 25 percent started at the end of the month.