More than 90% of Apple's production is still in China. Why Morgan Stanley says that's a problem

 Investors are cooling their heels with a Fed decision one day away. Markets are largely counting on a one-and-done playbook, but note the curveball we got from Down Under where the Aussie central bank delivered a rate-hike shocker

Shifting gears, our call of the day from Morgan Stanley warns of hurdles to come for tech companies such as Apple (AAPL), and rewards for others amid shifting global supply chains.

As lead equity analyst Shawn Kim and his team explain, the pandemic exposed vulnerabilities in supply chains, driving companies to "re-shore" key manufacturing, or relocate to perceived friendlier countries.

Take the semiconductor sector, where U.S. and China frictions have heated up in recent years. "Complete decoupling would resemble the 1980s, when the competitive intensity between the U.S. and Japan in the semiconductor industry skyrocketed," said the analysts, who say limiting the flow of technology could slice 16% from the 2030 global information and communications technology market total addressable market.

The meat of this report talks about what's in store for specific companies, and what investors should know, broken down by those potentially at risk and those that could benefit. Here's the at-risk list:

As for those potential beneficiaries:

Last word from the analysts at Morgan Stanley: "It will take many years to shift the supply chain, and the U.S. will remain dependent on China in many areas. However, investing in the technology sector now requires a change in thinking to navigate the economic implications of multipolarization. Investors need to consider the broad investment themes associated with geopolitical risks rather than just taking a bottom-up view."

https://www.morningstar.com/news/marketwatch/2023050273/more-than-90-of-apples-production-is-still-in-china-why-morgan-stanley-says-thats-a-problem