Key Apple supplier Foxconn wants to move the production of smartphone components from China to Vietnam. The company announced a major investment in Vietnamese factories, as well as a desire to diversify its supply chain, reports Quartz.
Foxconn announced the establishment of a large new plant in Vietnam and a $300 million investment to expand existing facilities located in the country. The decision was made after Apple announced that it would move part of its production from China. The new plant will be located on 111 acres of land near Saigon. Foxconn signed a 35-year lease for $62.5 million. The new factory will most likely assemble Macbooks. At the end of last year, Apple advised its partners to move production from China to India and Vietnam. The company cited supply disruptions and strict quarantine restrictions enforced by the Chinese government as reasons for the decision. Earlier, Apple announced the biggest quarterly decline in revenue in five years and the first annual decline in sales since 2019. CEO Tim Cook blamed the overall macroeconomic situation, as well as specific manufacturing issues in China, that affected iPhone 14 production.
Source : Nur