Apple’s Vietnam factory investment is worth US$400 million.
REPUBLIC.CO.ID, HANOI — Manufacturer of screens for Apple and Samsung in China, BOE Technology Group Co Ltd, plans to invest heavily to build two factories in Vietnam, said two people familiar with the matter, quoted by Reuters, Wednesday (11/1/2023). Investments are said to amount to $400 million, one of the sources said Reuters.
The plan underscores efforts by tech firms to reduce supply chain exposure to China. This was done amid trade and geopolitical tensions between Beijing and Washington, as well as production disruptions caused by China’s Covid-19 policies.
BOE is known to be in negotiations to lease dozens of hectares of land Vietnam North to be added to the factory. It is intended to supply the majority of television screens to Samsung and LG Electronics Inc. of South Korea.
However, once confirmed, BOE declined to comment.
North Vietnam has in recent years attracted large investments from the electronics giants, becoming a major hub for the production of smartphones, computers and cameras, including flagships from Apple and Samsung. Hon Hai Precision Industry Co Ltd and China’s Luxshare Precision Industry are also planning to assemble a number of Apple products in the area, such as laptops and tablets.
BOE is known to plan to lease 100 hectares of land and use 20 hectares for a factory with a remote control system at a cost of US$150 million, one of the sources said. Then BOE will spend US$250 million to build a factory on an area of 50 hectares, and the remaining 30 hectares will be used gradually until 2025.
BOE plans to produce organic light-emitting diode (OLED) displays that are more advanced than liquid crystal displays (LCDs) on site, the sources said.
Apple, which included BOE in its 2021 manufacturing partner list, is using OLED displays for its latest iPhone smartphones.
Meanwhile, Apple declined to comment. BOE’s plans in Vietnam aren’t specifically aimed at supplying Apple, the sources said.
