Meta’s plan to reduce reliance on Chinese manufacturing is running into the hard reality of supplier dominance. Goertek, a Shandong-based hardware maker, has tightened its control of the extended supply chain for Meta’s next-generation smart glasses, even as Mark Zuckerberg publicly aligns with Washington’s harder line on Beijing.
Goertek Expands Control of Critical Optics
Goertek has positioned itself as the indispensable partner for Meta’s wearable devices through a string of acquisitions and financing deals. The company recently took over Shanghai OmniLight, which develops advanced optical components, and backed the acquisition of Plessey, a UK-based supplier to Meta. These moves ensure Goertek holds leverage across key points of the supply chain.
Despite Meta’s efforts to shift production of some Quest headsets to Vietnam, Goertek remains a central player there as well, according to people familiar with operations. The supplier already manufactures Quest VR headsets and Ray-Ban smart glasses and is now building Meta’s forthcoming “Hypernova” model, which will introduce a small lens display for overlaying AI-driven notifications. Its influence highlights the difficulty of replacing entrenched Chinese partners, particularly in segments where few global players can match their scale and capability.
Political Rhetoric vs. Supply Chain Reality
The reliance on Goertek sits uneasily with Zuckerberg’s recent positioning on China. After years of lobbying to expand Facebook into the Chinese market, an effort blocked since 2008, he has shifted to warning U.S. leaders, including President Donald Trump, about the risks of ceding AI leadership to Beijing. Meta has also deepened ties with Washington, including collaborations with defense-tech firms such as Anduril and direct involvement in Pentagon AI advisory work.
Yet, disentangling hardware supply lines from China remains elusive. Industry data shows that while companies like Apple and Microsoft have diversified into India and Southeast Asia, Chinese suppliers still dominate advanced optics and micro-display technologies. In Meta’s case, executives once considered legal action against Goertek over alleged copycat devices but ultimately chose to maintain the partnership, an acknowledgment of limited alternatives.
The Overlooked Risk: Supplier Bargaining Power
The tension between political posture and operational dependency raises a broader point: supplier bargaining power in advanced components may now outweigh geography. While tariffs and geopolitical risks push companies to diversify, control over specialized technology ecosystems often keeps production anchored in China. Unless rival clusters emerge in regions like Vietnam, India, or Eastern Europe, firms such as Goertek will continue to shape strategic outcomes for global tech companies.
