Foxconn making giant expansion into Vietnam with new lease

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Apple is continuing to shift parts of its supply chain out of China, and the latest move is an enormous Foxconn site in Vietnam.

Foxconn expands in Vietnam
Foxconn expands in Vietnam


Foxconn announced an investment of $300 million to expand its manufacturing facility in North Vietnam, and now the supplier is leasing a new site located in the Quang Chau Industrial Park in Bac Giang province east of Hanoi.

A report from South China Morning Post reveals the Foxconn has signed a lease with Saigon-Bac Giang Industrial Park Corp for a plot of 111 acres for approximately $62.5 million. The lease will run until February 2057.

Manufacturers already produce some Apple products in Vietnam, such as AirPods, the Apple Watch, and some iPad production. Apple also plans to move some MacBook Pro manufacturing to Vietnam in mid-2023, which would be a first for the product category.

Apple told suppliers to plan for a manufacturing shift out of China in December to other countries such as Vietnam and India. China accounts for the majority of production, but Apple wants to diversify its supply chain and ease its reliance on China.

It won't be easy, though, as a September report estimated that it would take Apple approximately eight years to move as little as 10% of its production away from China. Increasing tensions between the US and China are a significant factor, but Apple manufacturing has also taken a hit from China's COVID-19 measures.

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Comments

  • Reply 1 of 4
    waveparticlewaveparticle Posts: 1,497member
    AppleInsider said:
    Apple is continuing to shift parts of its supply chain out of China, and the latest move is an enormous Foxconn site in Vietnam.

    Foxconn expands in Vietnam
    Foxconn expands in Vietnam


    Foxconn announced an investment of $300 million to expand its manufacturing facility in North Vietnam, and now the supplier is leasing a new site located in the Quang Chau Industrial Park in Bac Giang province east of Hanoi.

    A report from South China Morning Post reveals the Foxconn has signed a lease with Saigon-Bac Giang Industrial Park Corp for a plot of 111 acres for approximately $62.5 million. The lease will run until February 2057.

    Manufacturers already produce some Apple products in Vietnam, such as AirPods, the Apple Watch, and some iPad production. Apple also plans to move some MacBook Pro manufacturing to Vietnam in mid-2023, which would be a first for the product category.

    Apple told suppliers to plan for a manufacturing shift out of China in December to other countries such as Vietnam and India. China accounts for the majority of production, but Apple wants to diversify its supply chain and ease its reliance on China.

    It won't be easy, though, as a September report estimated that it would take Apple approximately eight years to move as little as 10% of its production away from China. Increasing tensions between the US and China are a significant factor, but Apple manufacturing has also taken a hit from China's COVID-19 measures.

    Read on AppleInsider
    10% in eight years? This cannot be explained by moving production out of China. People are too desperately biased toward China just like the balloon fiasco. They minds are confused without being able to do critical thinking.
  • Reply 2 of 4
    bsimpsenbsimpsen Posts: 399member
    It won't be easy, though, as a September report estimated that it would take Apple approximately eight years to move as little as 10% of its production away from China.
    That claim is severely at odds with the claim that Apple already produces 5-7% of iPhones in India, as reported here...
    edited February 2023
  • Reply 3 of 4
    humbug1873humbug1873 Posts: 160member
    10% in eight years? This cannot be explained by moving production out of China. People are too desperately biased toward China just like the balloon fiasco. They minds are confused without being able to do critical thinking.
    Maybe just tactics. If Xina gets pissed at Apple enough the CCP might start opposing Apple. As in boycotting their product in Xina, so people stop buying Apple products.
    or even worse making problems problem in the remaining supply chain of Apple itself.
    So Apple is moving away from Xina which is a good thing, because the war about Taiwan is coming as it is on Xi Jinpings agenda before he dies. This could happen soon, while Putin keeps the NATO busy in Ukraine. Although personally I expect Iran and North Korea jump into the fray as well in order to split western forces.
    That could easily end Apple if they don't get out in time.
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