Google is moving more hardware production out of China


By DebWuMark Bergen

STOPPING SALES: Nest Labs Inc, the maker of smart thermostats that Google Inc acquired for US$3.2bil (RM10.5bil), called a halt to all sales of its smoke alarms on Thursday after it discovered a possible defect that could cause users to turn it off unintentionally. — Reuters

Alphabet Inc’s Google is moving some production of Nest thermostats and server hardware out of China, avoiding punitive US tariffs and an increasingly hostile government in Beijing, according to people familiar with the matter. 

Google has already shifted much of its production of US-bound motherboards to Taiwan, averting a 25% tariff, said the people, asking not to be identified discussing internal matters. While US officials have pinpointed Chinese-made motherboards as a security risk, Google didn’t bring that up during discussions with its suppliers, they said. Tariffs have also pushed American-bound production of its Nest devices to Taiwan and Malaysia, the people said. 

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