Server power cords and plugs suppliers to shift production out of China

TAIPEI — U.S. technology companies, concerned that server power cords and plugs could be used by China to access sensitive data, have asked Taiwanese suppliers to shift production of these components out of the mainland.

Lite-On Technology, whose customers include Dell EMC, HP and IBM, is building a new factory in Taiwan to manufacture power components for servers at the request of American clients that cited cyberespionage risks from Beijing, according to one executive.

Quanta Computer, which supplies servers and data centers to U.S. tech companies including Google and Facebook, has shifted production to Taiwan and elsewhere, citing security as one of the reasons, an executive told the Nikkei Asian Review.

Source:

https://asia.nikkei.com/Business/Companies/Spy-fears-spread-to-power-cords-driving-shift-from-China

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RE: The tariff classification of a power cord from China 8544.51.900

https://www.customsmobile.com/rulings/docview?doc_id=NY+R04095

This item is not on any of the three lists of special tariffs for $250 billion of products imported to the U.S. from China.

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Ralf Matthaes TNS

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