The Vietnamese government has granted a license for Foxconn to build a new $ 270 million plant. The decision was confirmed this week, with the unit responding to an Apple request.
That’s because the Cupertino giant has changed its production strategy and is now set to assemble iPhones, iPads and other products outside of China. Vietnam was chosen to host the new plant due to its cheap labor and ease of product distribution across Southeast Asia.
According to Reuters, the Foxconn plant will be built in Bac Giang province and can deliver up to eight million devices a year. The unit is also expected to employ around 10,000 local workers.
As much as Apple does not comment on the matter, sources who have access to the company’s plans comment that the Vietnamese factory should be responsible for the production of iPads and MacBooks.
Foxconn has already invested around US $ 1.5 billion in Vietnam and is expected to increase this amount even further over 2021. This is because Thanh Hoa province should soon receive a new company plant. The unit will also be dedicated to Apple products.
It is worth remembering that the Cupertino giant is not the only manufacturer that is diversifying its supply chain to escape the trade war between China and the United States. In addition to Vietnam, India is also another country that has benefited from the flight of factories from Chinese territory.