During an interview, the CEO of MSI emphasizes that we must expect the worst in this trade war started by China and the United States.
The trade war between the United States and China has first affected Huawei , but it won't be the only one. All companies are facing a sharp increase in tariffs on imports to the United States. Large companies are trembling in the face of all this, as Charles Chiang, CEO of MSI, has made clear. The company's top executive stressed that "we must prepare for the worst."
MSI warns that the trade war between the United States and China could get worse
"You always have to prepare for the worst, all current sales are already receiving taxes of 25% and surely the next batches will continue to receive rates of 25" and that is why we must prepare for the worst, "highlights the head of MSI .
Regarding how they face this situation, he stressed that: “we are moving all possible production back to Taiwan. It is our short and medium term strategy. In the long term we will go to Vietnam or somewhere else, but Taiwan is the short term solution, the only one we have for now "
Moving production allows the company to avoid US tariffs on tech products made in China. In return, it has an increase in production costs. “We have spent years increasing production efficiency in China and building the best supply chain. If we go back to Taiwan, the prices will be higher, ”explains Chiang.
If this commercial tension ceases tomorrow, the company will continue to work on setting up facilities outside of China. They want to spread the production over several areas, including the Philippines, Indonesia and Vietnam. Remaining in Taiwan is not contemplated as there is not a full line of products required to manufacture their products.
Source: TH
