Chris Miller
Key Points Over the past decade, many electronics firms have talked about diversifying their supply chains. An analysis of Apple—America’s biggest consumer electronics firm—illustrates that most of their manufacturing supply chain remains in China, though there have been limited increases in Southeast Asia and India.
China’s role for Apple has grown substantially. Ten years ago, Apple relied on China primarily for final assembly, while today Apple not only assembles devices in China, it also sources many components from the country.
However, Chinese-owned firms generally only play a role in lower-value segments of the supply chain. Many of the higher-value components—even those made in China—are produced in factories owned by Japanese, Taiwanese, or US firms.
Introduction
“Designed in California, assembled in China,” reads the text etched on the back of most iPhones. For over a decade, the iPhone has exemplified China’s central role in producing the world’s electronics and solidified the country’s status as the world’s leading manufacturer.
Today, electronics constitute around a quarter of China’s exports; China counted for nearly a third of the entire world’s electronics exports. Apple— the world’s most valuable manufacturer of consumer electronics—stands at the center of this manufacturing base, having played a major role in helping build China’s capabilities.1
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