Dell_20181213

5G Hotspot Maker Moves Manufacturing From China To Taiwan

Inseego, an early mover in 5G hotspots, said it finished moving its manufacturing operations out of China and into Taiwan, mainly due to President Trump’s tariffs.

“In the fourth quarter, we moved contract manufacturing to Foxconn in Taiwan to achieve greater scale, meet the technical requirements of our new generation of products and eliminate potential future tariff exposure,” noted CEO Dan Mondor, according to a Seeking Alpha transcript of his remarks.

The company had, as Fierce Wireless reported, hinted at the move in November, noting that Trump imposed tariffs on products built in China and that as a result the company would move its manufacturing to a country based in “nonimpacted jurisdictions.”

Inseego hasn’t provided many details around the move, including which companies it worked with in China. However, the company has previously acknowledged that concerns over Chinese espionage also pushed it to move its manufacturing out of the country.

Indeed, the company clearly outlined the situation in the “risk factors” section of its most recent quarterly filing with the Securities and Exchange Commission: “We currently outsource the manufacturing of many of our products to a contract manufacturer located in China and are in the process of moving some production to other contract manufacturers operating in other countries,” the company wrote. “The current U.S. presidential administration has called for substantial changes to U.S. trade policy and has imposed significant increases in U.S. import tariffs. We have taken actions to mitigate the impact of such tariffs.”

Inseego isn’t alone. For example, Arris last year acknowledged that new US tariffs on China goods are imposing more costs and that as a result it would look to move more of its device production and supply chain out of China.―Light Reading

Share this:

Related Posts

Leave a Reply

Stay Updated on Enterprise Network and Carriers Industry.
Receive our Daily Newsletter.