Technology

Google to stop producing some of its hardware in China


The most recent trade spat between the U.S. and China has been ramping up lately with increased tariffs, a ban on Huawei using U.S. technologies, and China threatening bans of its own.

Advertisements

In response to the tariffs and an increasingly unfriendly Chinese government, Google’s parent company Alphabet has begun moving production of its U.S-bound motherboards and Nest hardware out of China.

According to some sources speaking with Bloomberg, Google has moved much of its U.S.-bound motherboard manufacturing to Taiwan. The shift comes in response to a 25% tariff placed on the import of printed circuit board assembly products.

The motherboards are most commonly used in servers for Google data centers to power some of its most popular and profitable services, including Search, Maps, cloud services, and much more.

Other companies that operate large data centers such as Amazon, Facebook, and Microsoft haven’t felt the sting of the tax so far because whole server racks are not affected by the tariff. Since Google assembles most of its U.S.-bound servers in Mexico, it would have been one of the companies impacted most by the 25% tax.

However, the chairman of Wistron Corp. (the company which makes servers for Facebook and Microsoft) recently said that it is currently looking to shift some of its operations outside of China as well.

That’s not the only product moving its production though, as the source also mentioned Google is shifting manufacturing of its U.S.-bound Nest products to Taiwan and Malaysia.


Also Read on TechDomes

Advertisements
Advertisements

Categories: Technology

Tagged as: ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.