October 5, 2022

Apple supplier Foxconn to invest $300 million in factory in Vietnam and expand production outside of China

A few days after reports indicated that Apple Inc. AAPL is in talks to manufacture watches and MacBooks in Vietnam for the first time, its Taiwanese supplier foxcon reportedly signed a memorandum of understanding to expand its facilities in the north of the country.

What happened: Foxconn has signed a $300 million memorandum of understanding with a Vietnamese developer Kinh Bac City as it seeks to diversify and boost production outside of China, according to a Reuters report, citing state media.

The report notes that the new factory, spread over 50.5 hectares (125 acres) in Bac Giang province, would generate 30,000 local jobs.

See also: Apple supplier Foxconn pushed by Taiwan to free up $800m in Chinese chipmaker: FT

An email sent to Foxconn by Benzinga a search for comment elicited no response as of press time.

The Southeast Asian country is Apple’s most important production center outside of China. It produces a wide range of products for the tech giant, including iPads and AirPods.

This came after Vietnamese Prime Minister Pham Minh Chinhduring his recent trip to the United States, visited Silicon Valley tech giants including Apple to meet the CEO Tim Cook. During the meeting, Chinh affirmed his commitment to creating a fair, transparent and market-based business environment to help American businesses and investors gain traction in Vietnam.

Besides Apple, Foxconn supplies big tech like Alphabet, Inc.. GOOGL GOOG, Dell Technologies, Inc.. Delland Sony group company SONY.

price action: According to the data of BenzingaPro, Hon Hai Precision Industry Co. Ltd HNHPF– better known as Foxconn – OTC shares closed down 0.96% on Friday. Apple shares closed down 1.51% at $171.52 each.

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Photo: Courtesy of ILO Asia-Pacific on Flickr