Business / Corporate

Nintendo may move some Switch console production from China

JIJI

Nintendo Co. is considering partially relocating the production of its Nintendo Switch video game console in China to Vietnam this summer, officials said Tuesday.

The game maker apparently aims to diversify business risks amid lingering concerns that the United States may expand its tariffs on Chinese products to include game consoles, the officials said.

Nintendo outsources the production of the Switch console mainly to electronics manufacturing service providers. Almost all are currently made in China.

Nintendo has been considering shifting its Switch production for a few years. Precautions against possible additional U.S. tariffs are not the only purpose of the envisaged relocation, a public relations official said.

The company is expected to keep its global Switch sales target for the 2019 business year unchanged at 18 million units.

The proposed fourth round of U.S. additional tariffs against China include game consoles. The United States stopped short of implementing them as President Donald Trump and Chinese President Xi Jinping agreed to a trade war truce in their talks late last month.

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