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Cook talked about the reasons for the success of China's electronic assembly industry, and the technical problems of American manufacturing

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Cook talked about the reasons for the success of China's electronic assembly industry, and the technical problems of American manufacturing

2024-04-07

Why is China so successful in electronics manufacturing and assembly? Most people would say it's because of low labor costs. But Apple CEO Tim Cook says this is one of the biggest misconceptions about manufacturing electronics in China. "In the fact, China stopped being a low labor cost country years ago," Cook explained at the Fortune Technology conference. "The biggest attraction for us is the quality of the people."


Cook said China's success in advanced manufacturing comes down to three things:

1) Excellent artisan skills

2) Sophisticated robotics

3) Advanced computer science

- This combination is "very rare" elsewhere in the world

How to improve U.S. manufacturing capacity for electronics assembly? Cook believes the United States needs to emulate China's best practices in order to compete effectively on the world stage. Here are a few things the United States must do to learn from China's experience.


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1. Technical personnel and skilled workers

According to Cook’ speaking, China has developed the skills necessary to create the kind of advanced, state-of-the-art precision tools needed to manufacture world-class products.

"In the U.S., you could have a mold engineer meeting, and I'm not sure we could fill the room. In China, you can fill the several football fields." "In China, vocational skills are very deep. China's education system has continued to promote vocational training even when others have downplayed it. You know that's a critical thing and we have to correct that, but China has done that from the beginning."


2. Teamwork and innovation iteration

Tim Cook mentioned a common misconception about making iphones in China - that Apple designs the products in California and then simply "dumps" them to the Chinese companies that make them. In fact, the most important thing to success is manufacturing, not design. "In fact, the engineering and process development associated with our products itself requires innovation - not just the products, but the way they are made - because we want to make hundreds of millions of products, and we want a level of quality with zero defects." That's what we've been looking for, "Cook explained. "The way you get there - especially when you're pushing the envelope on the precision of the types of materials and specifications you have - what you need most is a hand-in-hand partnership."


Innovative entrepreneurs, engineers, and software developers need to embrace manufacturing

Such manufacturing partnerships, in which design engineers work closely with production engineers, are uncommon in the United States, in usually the talented engineers choose to work for startups that are non-manufacturing based, or, if they want a manufacturing career, they work in an office outside the factory's production area.


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3. Manufacturing infrastructure and cluster effect

China has several manufacturing supercenters, such as Shenzhen and Shanghai. Its size and concentration are a classic example of "network effects." That is, an area becomes more competitive and profitable due to increasing density.


The advantages of cluster effect can be reflected in:

❆ Lower shipping costs

❆ More talent choices

❆ More frequent exchange of information

❆ Faster collaboration times The United States lacks sufficient regional concentration in advanced electronics manufacturing


4, High quality in mass production

Electronics manufacturers need to produce millions of products with few quality defects when you think about AirPods as a user, you may think "these are small, they can't be difficult". But the tiny AirPods have hundreds of components, and the level of accuracy embedded allows for higher audio quality. Airpod is actually very difficult to assemble, it requires an extremely high skill level." The electronics manufacturing ecosystem needs to be able to scale capacity to millions of units. The quality problems caused by a small defect can be catastrophic. The United States has been biased towards product design for many years and has little experience at the manufacturing level. After the return of manufacturing to the United States, its quality will also decline for some time.


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