Following China's announcement of an 84% retaliatory tariff on US imports, US President Donald Trump has raised tariffs on Chinese goods to 145%, effective immediately. Analysts believe this will significantly impact Apple and its supply chain.
According to reports from Apple Insider and 9to5Mac, White House Press Secretary Karoline Leavitt stated that the president believes that iPhones can be entirely manufactured in the US, citing the country's ample labor force and resources. She also claims that "if Apple didn't think the US could do it, they probably wouldn't have put up that big chunk of change," citing its recently announced US$500 investment plan.
Currently, nearly 90% of Apple's iPhones are assembled in China, with approximately 10% coming from India. This is primarily due to the lack of low-cost labor and manufacturing facilities in the US compared to China and India, as well as the absence of technical support and components from suppliers like Sony, LG Display, and TSMC.
Industry experts point out that for the US to have the capacity for large-scale iPhone production, at least five years of infrastructure development and personnel training would be necessary. As Apple CEO Tim Cook stated back in 2015, China has invested significant resources and time to establish itself as a global manufacturing hub, while the US has long lost relevant vocational skills.
At present, there are no iPhone assembly plants in the US, and there is a notable lack of related component supply and skilled labor resources.
Although some chips for Apple have begun production at TSMC's Arizona facility, its technology still lags behind Taiwanese standards by about five years. Mass production of 2nm process chips at TSMC's US plant may not occur until 2030, by which time the technology will no longer be leading-edge.
Moreover, most of Apple's announced investments in the US will focus on R&D, AI servers, film production, and educational training programs, excluding iPhone assembly production.
In summary, despite Trump's assertion that Apple's iPhones will soon be assembled in the US, the reality presents numerous challenges. The country lacks a robust supply chain for components and key raw material imports, along with disparities in assembly technology and skilled labor resources, all of which pose significant obstacles to Trump's vision.
Analysts conclude that to reduce reliance on Chinese iPhone production, the US must look forward to Apple significantly increasing its production capacity in India and further deploying production bases in other emerging markets to mitigate trade war risks.
Article translated by Charlene Chen and edited by Jack Wu
