Apple Potentially Pisses Off White House by Allegedly Transferring Mac Pro Production to China
In 2012, Apple's decision to assemble the Mac Pro in Austin, Texas, was a notable event. However, recent reports suggest that Apple will now manufacture the new Mac Pro in China, according to the Wall Street Journal. This shift in manufacturing locations is attributed to the cost-effectiveness of sourcing components in Shanghai, as many of Apple's suppliers are situated nearby.
The original plan to partially manufacture the desktop computer in the US faced challenges. The U.S. machine shop contracted to build a custom screw could only deliver a limited capacity of 1000 screws daily. Moreover, the Texas factory had staffing issues, with only one person responsible for securing materials. In contrast, China has a higher demand for similar positions, ensuring ample skilled workers.
The report also highlights that 80% of workers at the Austin plant were contract workers earning minimum wage. This setup left production lines stalled during shift changes, which is not a concern for manufacturers in China, known for their exhaustive working conditions.
Apple's decision to move Mac Pro production back to China comes amidst escalating trade tensions between the U.S. and China. The company is reportedly considering shifting 15-30% of its production capacity outside China in response to potential tariffs.
Once known for its significant manufacturing operations in the U.S., Apple has historically relied on Asian semiconductor manufacturing capabilities. Companies like Taiwan Semiconductor Manufacturing Company (TSMC) and ASE (Taiwan) handle crucial packaging tasks for Apple's M5 chip. This global supply chain, involving multiple countries, influences manufacturing decisions.
Apple did not comment on the Wall Street Journal's report. Workers at the Texas factory are expected to continue reimbursing computers and working for other companies, including HP. Demand for the older Mac Pro models has significantly diminished, and the Journal reports that Flex Ltd, a contractor responsible for assembling the Mac Pros, has shifted focus to refurbishing computers.
The global supply chain for Apple's M5 chip relies heavily on Asian semiconductor manufacturing companies like Taiwan Semiconductor Manufacturing Company (TSMC) and ASE (Taiwan). Due to the limited capacity of the U.S. machine shop and staffing issues at the Texas factory, Apple has decided to manufacture the new Mac Pro in China, according to recent reports. This move also aligns with the cost-effectiveness of sourcing components in Shanghai, as many of Apple's suppliers are located nearby. The 1832119111 serial number might indicate a refurbished Mac Pro that was once assembled at the Austin plant but is now being refurbished in China.
