HCMC – Taiwan’s Hon Hai Technology Group (Foxconn) will invest US$300 million in the construction of a new factory in Bac Giang, expanding its ability to supply Apple computers and phones.
Foxconn, Apple’s major contract manufacturer, and Saigon-Bac Giang Industrial Park Corporation signed a memorandum of understanding to lease 50.5 hectares of land in Quang Chau Industrial Park for the construction of a new plant.
Saigon-Bac Giang Industrial Park Corporation is currently a subsidiary of Kinh Bac City Development Holding Corporation (KBC).
According to KBC, Foxconn’s latest project in Vietnam will cost more than US$300 million. The firm will employ over 30,000 workers.
Foxconn’s new plant is expected to be one of the key investments in the province of Bac Giang, becoming a major contributor to local socioeconomic development.
Along with China, Vietnam has been a key manufacturing hub for Apple, producing a wide range of the company’s flagship iPad tablets and AirPod wireless earbuds.
Earlier, Foxconn and Apple’s Chinese supplier Luxshare Precision Industry (Luxshare-ICT) reportedly began trial manufacturing of the Apple Watch and MacBook in Vietnam, according to Nikkei Asia.
This is the first time that these Apple devices have been manufactured outside of China.
As of the end of May, Apple has 31 equipment manufacturing plants operated by its partners in 14 provinces and cities in Vietnam.
While Foxconn has also operated facilities in the northern provinces of Bac Ninh and Quang Ninh, Luxshare-ICT has invested in Quang Chau industrial park.
Certain Apple manufacturing and supply firms have recently moved portions of their manufacturing from China to other countries, including Vietnam, in order to diversify its production supply chain.