The Sharp Apple supplier collapses while the gloomy trade offs the plans of the Vietnam factory

TOKYO (Reuters) – Shares of Apple's Sharp Corp. supplier plummeted 14 percent on Friday due to concerns over China's escalation in the United States. trade war, even as the Japanese firm had announced a day earlier that it would build a factory in Vietnam to mitigate any impact on its activities.

Sharp, which manufactures sensors, camera modules and displays for Apple's iPhones, announced Thursday that the new Vietnamese factory will manufacture flat screens, electronics and air purifiers from exercise. starting in April of next year.

The plant will allow it to transfer part of its production from China at the request of its customers, said a Sharp executive Thursday after announcing a project to create a unit in Vietnam with a capital of 25 million dollars to manage the plant.

But Sharp's shares recorded their largest daily percentage decline since June 2016, following the threat by US President Donald Trump to impose new tariffs on imports from China starting next month. .

The additional US duty could cause more difficulties for Sharp, which has already experienced a 41% drop in its quarterly profits, as absolute tariffs have reduced sales of its components for smartphones.

Sharp joins an increasing number of global companies seeking to reduce production in China and move to low-cost countries to diversify their manufacturing sites in a growing business dispute.

Its parent company, Foxconn, is currently investigating the sale of its new $ 8.8 billion billboard plant in China, people familiar with the case told Reuters.

Sony Corp. has announced plans to close its Beijing smartphone factory, while Samsung Electronics Co. has ceased operations at one of its mobile phone plants in China.

Nintendo also plans to transfer part of the production of its Switch gaming console to Vietnam from China.