The global supply chain, mainly regarding China, has slowed down in the past two years due to various factors. These include power cuts, factory shutdowns, strict COVID control measures on a global scale, and geopolitical risk. As a result, according to Bloomberg estimates, by 2030, the world’s tech industry will depend 40% less on the Chinese supply chain.
According to Bloomberg, tech giants like Apple are becoming less dependent on China. For example, Apple has shifted part of its iPhone 14s production line to India. However, most of the iPhone production, up to 98%, is still made in China, and it will take Apple eight years to move 10% of its production capacity outside the country.
Bloomberg estimates by 2030, the global tech industry will reduce its dependence on China by 20–40%. In addition, in 10 years, hardware and electronics companies can be 20% to 30% less dependent on the country.
According to Bloomberg, supply chain decoupling is no easy task. Because it involves finding a replacement for all local component suppliers, not to mention modern and efficient transport, communication and electricity supplies.
Bloomberg analysts Steven Tseng and Woo Jin Ho said in a report:
“With China accounting for 70% of global smartphone manufacturing and leading Chinese vendors accounting for nearly half of global shipments, the region has a well-developed supply chain, which will be tough to replicate—and one Apple could lose access to if it moves.”