Foxconn Signs 111-Acre Lease in Vietnam for Apple Manufacturing Expansion
By 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.[0] The lease will run until February 2057 and was signed through Foxconn’s subsidiary Fulian Precision Technology Component Co.[1]
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.[2]
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.[3] 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.
0. “Foxconn making giant expansion into Vietnam with new lease” AppleInsider, 15 Feb. 2023, https://appleinsider.com/articles/23/02/15/foxconn-making-giant-expansion-into-vietnam-with-new-lease
1. “Foxconn set to expand iPhone operations in Vietnam due to its iPhone production disruptions at their Zhengzhou plant …” Patently Apple, 16 Feb. 2023, https://www.patentlyapple.com/2023/02/foxconn-set-to-expand-iphone-operations-in-vietnam-due-to-its-iphone-production-disruptions-at-their-zhengzhou-plant-in-q4-22.html
2. “Apple wants to move its manufacturing out of China” Yahoo! Voices, 15 Feb. 2023, https://www.yahoo.com/news/apple-wants-move-manufacturing-china-212300214.html
3. “Apple supplier Foxconn secures new manufacturing site in Vietnam after China turmoil | Glamsham” Glamsham, 16 Feb. 2023, https://glamsham.com/world/technology/apple-supplier-foxconn-secures-new-manufacturing-site-in-vietnam-after-china-turmoil
