Goertek VP suddenly resigns after Apple supply chain comment
Goertek VP resigns — did he say too much?
The vice-president of an Apple manufacturing partner has resigned just days after giving insight into the urgency with which Apple’s supply chain is attempting to set up business outside China.
Supply chain economics
Goertek is one of Apple’s largest acoustic suppliers and is involved in AirPods manufacture. Now we learn company vice-president Kazuyoshi Yoshinaga will leave the company for “personal reasons”, the company said. Yoshinaga had observed that Apple’s partners are moving manufacturing to new nations far faster than we’d expected as relations between the US and China continue to deteriorate.
“We get requests from our clients almost every month. ‘Do you have any plans to expand to India?’” he had said.
While there is no evidence to show any relationship between those comments and his resignation, it is notable that they seemed to hint at increasing urgency on the part of Apple to get its supply chain set up in India.
Goertek said nothing more, which sparked speculation, given his resignation was immediate and followed just a few days since he made his comments.
Moving on for resilience
Multiple manufacturers from across the Apple chain are swiftly setting up for business in China. Others are focused on Vietnam – it’s thought Apple’s anticipated new model MacBook Airs will be manufactured there. Foxconn is investing hundreds of millions of dollars in new production facilities in the country.
Chairman Young Liu is visiting India. Today we had a warm meeting with Honourable Prime Minister @narendramodi and updated him on our good progress in the country. Foxconn will continue to build an ecosystem in India allowing all our stakeholders to share, collaborate and thrive. pic.twitter.com/We86Gd9iXI
— Hon Hai Technology Group (Foxconn) (@HonHai_Foxconn) February 28, 2023
India is offering numerous inducements to tempt Apple suppliers to migrate even as suppliers themselves seek stable places for their business.
India has numerous advantages, including a young workforce. But it also has some challenges for industrial deployment, not least divergences in local regional bureaucracy. All the same, Apple and its suppliers seem set to make around 25% of its iPhones there within the next few years, but perhaps that transition will be accelerated even more.
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