Nintendo is moving Nintendo Switch production to Vietnam due to China tariffs

Nikkei has revealed that Nintendo will shift some production of its Nintendo Switch console to Vietnam from China due to the tariffs placed on the latter by the Trump administration. Read on below to learn more:

“Almost all Switch units are manufactured in China by contract manufacturers such as Hon Hai Precision Industry, also known as Foxconn. Their Vietnamese facilities will take over part of that work possibly within a few months.

“About 40% of the nearly 17 million Switch consoles sold in fiscal 2018 were sold in the Americas — chiefly in the U.S., Nintendo’s biggest market by sales. The company has been hunting for ways to dodge the risk of tariffs, which it senses would result in a severe blow to both its operations and customers.

“Nintendo plans to keep its fiscal 2019 target for global Switch sales at 18 million units, so an increase in Vietnamese production will likely bring a corresponding decrease in China relative to initial plans.”

Source: Nikkei Asian Review

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