U.S. Tech Firms Deepen Ties with Shenzhen Manufacturers

California imported $ X billion worth of goods from China last year, making China the state’s largest source of imports despite a sharp year-on-year decline linked to U.S. tariffs. Approximately 36 % of California’s imports were classified as computer and electronic products. Shenzhen, the second-largest Chinese city by overall exports, accounted for nearly 19 % of China’s advanced-technology exports, according to CNBC calculations of official data accessed via Wind Information.

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Joshua Woodard, a MIT graduate who left Apple to lead supply-chain firm The Sparrows in Shenzhen, notes that most of the company’s clientele are U.S. firms and that “outside the geopolitical sphere, people want to build actual things.” Will Wang, CEO of smart-glasses startup Even Realties and former Apple employee, argues that building the “next Apple” requires proximity to Shenzhen’s hardware cluster. Analyst Lian Jye Su of Omdia observes that Chinese vendors are gaining importance in niche technologies, especially in the hardware that powers humanoid robotics.

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Su also points out that traditional robot manufacturers continue to rely heavily on components from Japan, Germany, Switzerland, South Korea and the United States, indicating that Shenzhen’s dominance is not universal across all hardware segments.

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• “A lot of our clients come from the States,” — Joshua Woodard, The Sparrows

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• “We're not really going to see India, Vietnam challenge anytime soon,” — Joshua Woodard

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• “If we wanted to create a future around consumer electronics — if we wanted to really build possibly the next Apple — we need to be at the center of hardware, which is Shenzhen,” — Will Wang, Even Realties

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• “Chinese vendors are becoming more important in niche technologies,” — Lian Jye Su, Omdia

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• “The hardware behind humanoid robotics is dominated by Chinese suppliers, he said.” — Lian Jye Su, Omdia

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