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Sunday, December 15, 2019

Nintendo says to shift part of Switch console production out of China

The move would make Nintendo the latest company to relocate production out of China amid a Sino-U.S. trade war punctuated by tit-for-tat import tariffs spanning industries.

By: Reuters | Tokyo | Updated: July 9, 2019 7:36:03 pm
The Nintendo move will make it the latest company to relocate production amidst the ongoing import tariff war between China and USA. (File photo) Nintendo’s move will make it the latest company to relocate production amidst the ongoing import tariff war between China and USA. (Image source: Bloomberg)

Nintendo Co Ltd plans to shift part of the production of its Switch gaming console to Vietnam from China to diversify manufacturing sites, a spokeswoman at the Japanese video game maker told Reuters on Tuesday.

The move would make Nintendo the latest company to relocate production out of China amid a Sino-US trade war punctuated by tit-for-tat import tariffs spanning industries. Nintendo, which outsources almost all Switch console production to contract manufacturers in China, plans to make the partial shift to Vietnam this summer, the spokeswoman said.

The shift is aimed at diversifying risks and not to escape the impact of potential tariff hikes by Washington on products imported to the United States from China, the spokeswoman added.

The Nikkei first reported the plan earlier on Tuesday. Other Japanese firms looking to move production from China include electronics maker Sharp Corp and photocopier manufacturer Ricoh Co Ltd.

Last month, the Nikkei business daily reported that US technology leader Apple Inc has asked major suppliers to assess the cost implications of moving 15 per cent to 30 per cent of their production capacity to Southeast Asia from China as it prepares to restructure its supply chain.

Also Read|Nintendo soars as Tencent wins Switch game approval in China

Washington has held off launching the fourth tranche of tariffs on $300 billion worth of goods, a measure that would see almost all Chinese imports to the United States impacted by tariffs.

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