The two Chinese manufacturers of Apple’s wireless earbuds are each in talks to borrow hundreds of millions of dollars from banks to expand production in Vietnam, according to a person familiar with the matter. The discussions come as a growing number of electronics manufacturers move some operations out of China as a hedge against trade tensions between China and the U.S.
The two Apple suppliers—Luxshare Precision and Goertek—make a number of accessories and components for the iPhone maker, including the AirPod, which has become a hit since its first release in 2016. Both Luxshare and Goertek have benefited from strong consumer demand for AirPods, analysts say. The price of their stocks, which are traded on the Shenzhen Stock Exchange, has more than tripled since the beginning of the year.