DigiTimes reports that Taiwanese network equipment assemblers continue to relocate their production lines from China to other regions. Until recently, it was profitable for manufacturers of network devices to locate production in China. However, the trade war that escalated between China and the United States in 2018 has made adjustments to the existing business model.

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Besides Taiwan, Vietnam is the preferred location for companies like Gemtek, Wistron NeWeb Corporation (WNC), Arcadyan and Hitron. For example, WNC and Arcadyan intend to deploy additional assembly sites here in addition to the existing ones – these enterprises will start working in the second half of this year.

WNC said that the company’s second production site in Vietnam is 90% complete. The release of network equipment on it is planned to be organized in the next quarter. Arcadyan is also preparing new production lines in Vietnam, but they will start working a little later – in the last quarter of this year.

It is also said that the transfer of production of network equipment from China to other regions is not hindered even by a new wave of the spread of coronavirus infection. It is possible that the observed picture will lead to certain changes in the world market of network devices. Similar processes took place in the server market. HPE, for example, even deployed a server assembly in the United States for highly demanding customers.

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