Taiwan‘s Hon Hai Group’s plan to invest an additional US$270 million in Vietnam was recently approved by the Vietnamese government
Taiwan Hon Hai Group’s plan to invest an additional US$270 million in Vietnam to open a new factory has recently been approved by the Vietnamese government. This investment will be mainly used for the production of Apple MacBook and iPad products.
The Vietnamese government said in a statement released through its official website on January 18 that it has issued a license to Hon Hai’s subsidiary Fukang Technology for the plant, which is located in the northeastern Vietnamese province of Be Giang, with an estimated annual production capacity of 8 million units.
Hon Hai had made an announcement in November 2020 that it would move its iPad and MacBook assembly lines from the mainland to Vietnam, establishing a subsidiary, Fukang Technology, in Vietnam for long-term investment. The plant will start producing Apple MacBook and iPad products, as well as accessories such as Sony TVs and keyboards, in the first half of 2021.
At the Time, Reuters quoted a knowledgeable source as revealing that, as Apple’s supply chain, Hon Hai had moved its iPad and MacBook assembly operations from the mainland to Vietnam at Apple’s request. Apple began laying out two sets of supply chains on the mainland and outside the mainland in 2019.
The Vietnamese government said that as of December 2020, Hon Hai’s total investment in Vietnam has reached $1.5 billion, including a total investment of $900 million in Bac Giang province, creating 35,000 jobs; there are also factories in Bac Ninh and Vinh Phuc provinces, and Hon Hai is expected to continue to invest an additional $700 million in Vietnam in 2021, creating 10,000 jobs.
In addition to Hon Hai, Taiwan’s Compal, Wistron, Inventec, PEGATRON and other large electronics foundries have also moved some of their production lines out of the mainland and have all made Vietnam one of their investment choices with new factories. Vietnam is expected to become the largest manufacturing base of Taiwan’s electronics industry in Asia after the mainland.
At present, Taiwan’s electronics foundry in Vietnam assembly and production of products mainly include PCs, notebook computers, TVs, tablet PCs, Netcom and smart Home products. For example, PEGATRON’s Vietnam Hai Phong plant OEMs Google smart speaker products, Wistron’s Ha Giang plant mainly produces laptops, Inventec’s Vietnam plant OEMs Apple AirPods, and Compal’s Vinh Phuc plant OEMs smart wearable devices, smartphones and speakers, among other products.
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