The video game company Nintendo plans to relocate to Vietnam the part of the production of its Switch console that takes place in China to prevent the commercial war between Beijing and Washington from affecting the economic performance of the device.
Almost all Switch hardware is currently manufactured in China through manufacturers there as Hon Hai (known as Foxconn), whose Vietnamese facilities will assume part of the move within the next few months, reported Tuesday the business newspaper Nikkei. Nintendo would thus seek to diversify risks and avoid difficulties linked to the tariffs that the United States has been imposing for months on Chinese imports and that could damage their operations, if Washington finally decides to apply a new battery of tariffs.
About 40% of the nearly 17 million Switch units sold in 2018 were sold in the Americas, mainly in the U.S., Nintendo’s largest market. The U.S. price of the console, which is currently not subject to tariffs, could skyrocket if the company decided to charge consumers most or all of the 25% tariff that Washington has threatened to impose.