Foxconn is planning to invest US$100 million to build a factory for producing electronic components in Nghe An Province, a move in line with Apple’s strategy of relocating parts of its supply chain out of China.
This information was confirmed by Le Tien Tri, head of the management board of Southeast Nghe An Economic Zone, on laodong.vn.
“The People’s Committee of Nghe An Province has granted the investment registration certificate to Foxconn," Tri said. "The first phase of the project will require an investment of $100 million, and the investor will lease a 48ha plot of land in the WHA industrial park.”
The project includes further investments in Phase 2 and Phase 3.
Earlier in May, Apple Insider reported a member of Foxconn – Apple’s global supply chain partner – was negotiating to buy land use rights in India and Viet Nam to expand its production in both countries.
In February, Foxconn signed a lease agreement with Saigon-Bac Giang Industrial Park JSC to rent 45ha of land until 2057 for a total of $62.5 million in Quang Chau Industrial Park in Bac Giang Province.
Foxconn has already invested in many factories in Viet Nam to manufacture home electronics in Bac Giang and Quang Ninh and participated in the development of industrial park infrastructure in Bac Giang and Vinh Phuc.
For Apple’s products, its companies are producing AirPods, the Apple Watch and some iPad models. As per Apple’s announcement, there are plans to shift some manufacturing of the MacBook Pro to Viet Nam by mid-2023. — VNS