Though the US and China have agreed a 90-day suspension on new tariffs, Taiwan-based ODMs are still being pushed by their brand clients to establish production capacity outside of China to lower the risk from the trade war, according to sources from ODMs.

The sources noted that some clients, instead of moving their supply chains out of China, are still making efforts trying to persuade the US government to drop the tariffs plan. But most others are willing to shoulder extra expenses for relocating their production out of China, fearing that the trade war may grow fiercer and affect their businesses, the sources said.

Quanta Computer’s new factory near its headquarters in Taiwan will begin operation in the near future, while Compal Electronics has started conducting pilot production at its plants in Vietnam and will begin mass producing notebooks shortly.

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