Retail News Asia, a news source for the Asian retail industry, shared a report from Apple detailing the tech giant’s global supplier list.
According to the list, which is finalized for the fiscal year ending September 30, 2023, the number of Vietnamese suppliers in Apple’s supply chain is the largest in Southeast Asia and fourth globally.
 Tim Cook, CEO of Apple, made his first visit to Vietnam and met with Prime Minister Pham Minh Chính on April 16. Photo: VGP
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This supply network has rapidly expanded since 2016, when companies like Foxconn and Luxshare Precision began establishing factories in Vietnam.
Apple’s supply network development last year witnessed the departure of two companies from Vietnam: MYS from China and Seoul Semiconductor from South Korea. However, this was offset by the addition of 12 new suppliers, including AAC Technologies, Insight, LY iTech, Desay Battery, Sunway Communication, and Sunwoda (all from China); Foxlink, Golden Arrow Group, Quanta, and Yageo (Taiwan); Hi-P International Limited (Singapore); and R.R.Donnelley and Sons Company (USA).
As of the end of fiscal year 2023, Vietnam has 35 suppliers for Apple, compared to 25 in the previous fiscal year. This number is significantly higher than Thailand (24 suppliers), Malaysia (19), and the Philippines (17).
In terms of Apple’s global supply chain, the number of suppliers in Vietnam is only lower than China (158); Taiwan (49); and Japan (44).
Factories in Vietnam manufacture a range of significant Apple products, including iPad tablets, MacBook computers, Apple Watch smartwatches, AirPods headphones, and related components and accessories.
In recent years, Retail News Asia reports that Apple has encouraged its suppliers to diversify their production locations to mitigate risks associated with over-concentration and excessive reliance on China.
According to DigiTimes Asia, countries in Southeast Asia are seen as having great potential to become additional production sites for Apple’s supply chain. Among them, Vietnam has the most promising outlook, evidenced not only by the increase in the number of suppliers but also by the expansion of operations, with Chinese companies Biel Crystal and Luxshare Precision having built additional factories in Vietnam.
Apple’s supply chain list shows that while the diversification of the supply chain is progressing, China remains the largest global manufacturing location for the US tech giant. The number of Apple suppliers in China represents approximately 37.5% of the 761 entities in Apple’s global supply chain.
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