According to reports, Apple has instructed Taiwanese suppliers to strictly adhere to a long-standing requirement that Taiwanese-made parts and components bear the labels ‘Taiwan, China’ or ‘Chinese Taipei’ on their packaging.
The company, according to Nikkei, wants to avoid inconvenience due to stringent Chinese customs checks as a result of US House Speaker Nancy Pelosi’s recent trip to Taiwan.
According to the source, the Cupertino-based tech giant has requested that the suppliers handle the situation urgently to prevent any potential interruptions brought on by holding products and components while they are being examined.
The news is released as Apple prepares to introduce the iPhone 14 and other new devices in September.
Any item, document or carton bearing ‘Made in Taiwan’ phrase can lead to shipments getting delayed or rejected by the Chinese customs authorities, and, in a worst-case scenario, a fine of 4,000 yuan ($592) may also be levied, Nikkei reported quoting sources.
Beijing views Taiwan as a province that broke away from the Chinese mainland and will eventually be unified. Taiwan, a self-governing island with a population of about 23 million, perceives itself as separate from the mainland.
Apple has been working to diversify its production process since before the Covid epidemic caused a disturbance in supplies.
The US computer giant has placed significant bets in Brazilian and Indian sites in an effort to become less dependent on Chinese facilities.
Although iPhone 14 production capacity in India won’t be sufficient to address the short-term production gap caused by production issues in China, analyst Ming-Chi Kuo stated that it’s still a ‘important milestone for Apple’ when it comes to expanding iPhone production to other places, reports The Guardian.
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