As Apple Inc’s AAPL supply chain returns online after several COVID-19 disruptions, its efforts to shift some production out of China have left a key partner less than pleased.

What HappenediPhone assembler Hon Hai Precision Industry Company Ltd HNHPF has taken exception to Chinese rivals shifting base to Vietnam and poaching its employees, Bloomberg reported.

Without naming the companies, Foxconn’s Chairman Young Liu was quoted as saying Chinese rivals had set up operations near its campuses in Vietnam to poach Foxconn employees, the report said.

Related Link: Apple Supplier Foxconn Weathers It All To Report Highest Quarterly Profit In 8 Years 

Bloomberg noted that three of Foxconn’s Chinese rivals, namely Luxshare Precision Industry CoGoerTek Inc, and BYD Electronic (International) Company Ltd BYDIY have operations in Vietnam. 

The first two manufacture AirPods, while BYD is getting started on iPad production.

Foxconn is based in Taiwan but has much of its production in China. Vietnam, according to Bloomberg, is the company’s second-largest manufacturing base after China, where it currently employs about 600,000 people and hopes to grow that over the next couple of years.

Price Action: Foxconn shares trading over the counter in the U.S. closed 1.30% lower at $7.60, according to  Benzinga Pro data.

 


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