Nintendo moves some switch production out of China in reaction to tariff threat
Nintendo Co. is shifting some production of its Switch videogame console to Southeast Asia from China to limit the impact of possible U.S. tariffs on Chinese-made electronics, said people who work on Nintendo’s supply chain.
It is another example of manufacturers adapting to the tariff threat. Taiwan’s Foxconn Technology Group said Tuesday that it was ready to move assembly of Apple Inc.’sAAPL, +1.16% iPhones out of China if necessary, and Japan’s Sharp Corp. , which is controlled by Foxconn, said last week that it planned to move production of personal computers to Taiwan or Vietnam.
Kyoto-based NintendoNTDOY, -2.42% has traditionally relied on the Chinese factories of contract assembly companies to make its videogame hardware. That includes the Switch console, introduced in 2017.
The Wall Street Journal reported in March that Nintendo planned to update the Switch this year with two new models. One is set to look similar to the current model with beefed-up components, while the other is expected to be a less-expensive model with a new look.
People involved in the supply chain said production in Southeast Asia has started for the Switch, including the current type and the two new models, suggesting Nintendo is getting ready to introduce them soon. They didn’t give specific volume figures but said Nintendo wanted to have enough units to sell in the U.S., the largest market for videogame consoles, when the new products go on the market.
An expanded version of this report appears on WSJ.com.
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