Apple contractor Foxconn secures new site in Vietnam

Apple’s biggest contractor Foxconn has secured a new site in Vietnam, as the Taiwanese company pushes ahead with efforts to shift more production away from mainland China following major disruptions at its key manufacturing base late last year, reports The South China Morning Post.

Taipei-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.

Last August the contractor signed a $300 million memorandum of understanding with Vietnamese developer Kinh Bac City to expand its facility in the north of the country to diversify and boost production, according to Reuters. 

Foxconn has also has invested US$500 million in its Indian subsidiary, as the Taiwanese manufacturing giant moves ahead to diversify its supply chain after China’s stringent pandemic controls disrupted production at its top iPhone plant in the central city of Zhengzhou.