With the U.S.-China trade war last year and the outbreak of the new coronavirus, American technology firms have looked to move production from China. But that won't be easy.
To understand why, it's important to break down the manufacturing process. P.S. Subramaniam, partner in the strategic operations practice of Kearney, explains there are electronic components like displays and memory, modules such as cameras, and the assembly of the finished goods.
Shifting manufacturing locations helps diversify risk but isn't a cure-all, and in fact could become a game of whack-a-mole."This is a singular choke point as components are a necessary ingredient in modules and finished goods assemblies. This is very hard to move as it requires entire ecosystems, Subramaniam told CNBC.
On top of that, suppliers for components that companies rely on will have their manufacturing in China. That could make any move for an American technology firm to diversify a much longer process.
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