Goertek and Luxshare Precision are looking for funding to expand their operation in Vietnam, per The Information.
The AirPods suppliers are asking for ‘millions of dollars’ to move production outside China amidst the trade tension that’s happening between China and the United States. Both companies have started trying to manufacture components for AirPods in Vietnam.
Vietnam is looking to be the next best alternative, due to its close proximity to China and therefore, close access to the parts via air, sea or land. Moreover, labor costs are about a third of China’s, and the current workforce is full of fresh graduates in engineering. The government is offering tax breaks and subsidies to those who would want to set up a business in the country.
The Apple AirPods have recently gone up in popularity, prompting demand and strong sales. Goertek and Luxshare Precision have enjoyed strong growth and rising market shares since 2019.