Foxconn leases new site in Vietnam as Apple contractor continues to diversify production away from China
- Taipei-listed Foxconn, formally known as Hon Hai Precision Industry, has signed a lease with Saigon-Bac Giang Industrial Park Corp
- Foxconn’s latest deal in Vietnam comes after its iPhone plant in Zhengzhou was rocked last year by worker unrest amid a Covid outbreak
Taiwan-listed Foxconn, formally known as Hon Hai Precision Industry, has signed a lease with Saigon-Bac Giang Industrial Park Corp to occupy a plot of 45 hectares (111 acres) for around US$62.5 million to meet “operational needs and expand production capacity”, according to an exchange filing on Tuesday.
The site, located in the Quang Chau Industrial Park in Bac Giang province east of Hanoi, was rented through Foxconn’s subsidiary Fulian Precision Technology Component Co. The lease will run through February 2057, the company said.
Foxconn signed a US$300 million agreement with a Vietnamese developer last August to build a new factory in Bac Giang, where it already produces iPads and AirPods, Reuters reported at the time, citing state-run newspaper Tuoi Tre. The report did not mention the type of products that would be made at the new facilities.
“Covid-19 challenges … significantly impacted the supply of iPhone 14 Pro and iPhone 14 Pro Max and lasted through most of December,” Apple chief executive Tim Cook said during an earnings call earlier this month, referring to the turmoil at Foxconn Zhengzhou.