Other countries such as Mexico and Vietnam are also turning into crucial locations to contract manufacturers who are supplying American brands as they attempt to diversify production away from China.
The US was also considering the option of limiting shipments of American chipmaking equipment to memory chip makers in China in order to halt China’s semiconductor sector developments and protect US companies.
If the Biden administration goes ahead with limiting shipment, it could hurt South Korean memory chip giants such as Samsung Electronics Co Ltd and SK Hynix Inc, that have large factories in the country.
Earlier this month, the Nikkei reported that Apple suppliers were in talks to produce Apple Watch and MacBook in Vietnam for the first time.
(With inputs from Reuters and Bloomberg)