Taiwan-based electronics assembler Foxconn, formerly known as Hon Hai Precision Industry, has signed a lease with Saigon-Bac Giang Industrial Park Corp for a plot of 111 acres for around $62.5 million. The lease will run until February 2057 and was signed through Foxconn’s subsidiary Fulian Precision Technology Component Co.
The decision comes as Apple attempts to move parts of its manufacturing process out of China, following supply-chain disruptions caused by the pandemic. The new factory will sit on 111 acres just outside of Saigon and is expected to produce Macbooks, AirPods, Apple Watches, and iPads.
Foxconn also plans to quadruple the workforce at its iPhone-making Indian plant over two years and increase its workforce at its plant in India over the next two years. Apple has also told suppliers to plan for a manufacturing shift out of China in December to other countries such as Vietnam and India, citing supply chain tie-ups and China’s extreme Covid-19 restrictions.
The move is part of Apple’s efforts to diversify its supply chain and ease its reliance on China, and Foxconn’s new lease is a significant step in the right direction.
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