Amid the U.S.-China trade war, Apple’s manufacturing partner, Quanta Computer, has reportedly decided to expand its production facility in Taiwan. The move is not surprising considering that many Chinese manufacturers have been increasing their production capacities in Taiwan due to the ongoing tensions. 

Upstream supply chain sources told Digitimes Tuesday that Quanta is moving some of its server production from China back to its Taiwan-based headquarters. In light of this, the company is said to be planning to expand its Taiwanese facility located in Linkou District.

Quanta’s Taiwanese production facility, which has 33,000 square meters of floor space, was mainly used for pilot production. But since the U.S.-China trade war started, the company modified the facility so that it could also accommodate server manufacturing. 

To realize the planned expansion, Quanta is looking into acquiring a new factory site that would double the size of its Linkou plant. When asked to comment on the leaked information, Quanta did not deny it but it clarified that the expansion is still in its infancy stage. Nevertheless, the confirmation is expected to trigger a rise in Taiwan’s industrial land prices. 

Quanta explained that it thought of the expansion after some of its clients expressed concerns over the effects of the U.S.-China trade war. It then noted that details of its planned purchase have not been finalized yet. 

It’s not just Quanta that’s expanding production facilities in Taiwan. Upstream component makers have also been boosting their production capacities in the country since last year. Catcher Technology, another Apple partner, begun operations in its new plants in Taiwan in 2017. Hinge maker Shin Zu Shing also started operations of its new facilities there last November. 

Inventec, Accton, Sercomm and Wistron also moved their production away from China. Just like Quanta, these companies are looking to dodge the U.S. tariffs. All of them save for Wistron have also expressed their plans of increasing their production in Taiwan in the near future. 

Quanta Computer Quanta is expanding its production facility in Taiwan. Photo: Getty Images/Sam Yeh