Foxconn to Reportedly Invest $300 Million More in Northern Vietnam

To diversify and increase manufacturing, Apple supplier Foxconn has inked a $300 million (approximately Rs. 2,400 crores) memorandum of understanding with Vietnamese developer Kinh Bac City, according to official media on Saturday.

According to the Tuoi Tre newspaper, 30,000 local employment will be created by the Taiwanese company’s new facility, located on a 50.5 hectare (125 acres) tract of land in Bac Giang province. Requests for a response from Foxconn, formerly Hon Hai Precision Industry, and Kinh Bac City were not immediately fulfilled.

According to Tuoi Tre, Foxconn, which has been operating in Bac Giang for 15 years, has shifted some of the manufacturers of its iPad and AirPods there. It did not specify the capacity of the new facility or the items that would be manufactured there.

According to the Vietnamese government, last year, Foxconn invested $1.5 billion (or around Rs. 12,000 crores) in the Southeast Asian nation.

According to a recent report, Apple’s suppliers are discussing making the Apple Watch and MacBook in Vietnam for the first time, according to a report from Nikkei Asia on Tuesday, which cited individuals with knowledge of the situation.

According to the source, Apple’s Chinese suppliers Luxshare Precision Industry and iPhone assembler Foxconn have begun producing Apple Watch and MacBook prototypes in Northern Vietnam.

A portion of Apple’s iPhone production has been moved from China to other regions, including India, where it began producing the iPhone 13 this year and where it also has plans to build iPad tablets.

India, the second-largest smartphone market in the world, and nations like Mexico and Vietnam are becoming more significant to contract manufacturers supplying American brands as they try to diversify production away from China. An iPad with a larger screen and an iPad Pro with an M2 chip may launch in October.