Apple supplier Foxconn invests more in North Vietnam to diversify and boost production
Apple supplier Foxconn has now pledged to invest an additional $300 million in northern Vietnam to diversify and increase production. Foxconn has signed an agreement with Vietnamese developer Kinh Bac City to achieve these goals.
The company will expand its facilities in the country. This news comes thanks to a state media report.
Foxconn expands into North Vietnam for Apple supply chain
According Reuters (Going through Tuoi Tre newspaper), Foxconn’s factory will be set up on a 50.5-hectare (125-acre) plot in Bac Giang province. This decision aims to add 30,000 local jobs.
The report stated,
Foxconn, which has been in Bac Giang for 15 years, moved some of its iPad and AirPods production to Bac Giang’s Quang Chau Industrial Park, Tuoi Tre reported. He did not specify what kind of products would be made at the new plant or its capacity. The Vietnamese government said last year that Foxconn had invested $1.5 billion in the Southeast Asian country.
Moreover, the move also follows news that Foxconn has started test production of the Apple Watch in northern Vietnam. Additionally, supplier Luxshare ICT produces the Apple Watch Series 8 in China and Vietnam.
Apple has been doing its best to diversify its production for some time. Partly thanks to China’s strict COVID-19 lockdowns. Moreover, in early August, there were fears that a visit to China by a US House of Representatives would push China for revenge. To say the least, relations between the United States and China have been strained, which could soon impact Apple’s supplies.
In addition to expanding in Vietnam, Foxconn is also looking to expand its factories in India. In late August, reports indicated that a recent hiring boom in India allowed Foxconn to further expand one of its facilities. The Foxconn factory in India produces the iPhone. Foxconn is likely copying Apple’s decision to maintain supply chain and manufacturing diversity.
However, despite numerous supply chain issues and labor shortages, analyst Ming-Chi Kuo says Apple is still on track to deliver big numbers for the iPhone 14.
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