(Reuters] – Apple Inc. (NASDAQ:) has informed contract manufacturers it plans to grow its production outside China. This is according to Wall Street Journal sources, citing persons familiar with the subject.

The report also stated that India and Vietnam are two countries which Apple has already considered as potential alternatives.

Apple forecasted bigger supply issues last month as COVID-19 locksdowns in China slowed demand and production.

According to the report, Apple is using China’s anti-Covid policies and other factors as a reason for its decision.

Apple did not respond to WSJ, and Reuters couldn’t reach Apple on Saturday.