Main Apple supply chain partner Foxconn will invest $300 million to expand its Northern Vietnam facility, as part of an effort to expand production in countries outside China.
Foxconn has signed a memorandum of understanding with Vietnamese developer Kinh Bac City to invest the money and expand its existing plant.
Reuters reports the expansion plan, which was first spotted by local media, involves a new manufacturing plant built on 125 acres in Bac Giang province, which will generate 30,000 jobs in the area. In 2022, the Vietnamese government said that Foxconn had invested a total of $1.5 billion in the country.
Foxconn has had some of its production based in the Bac Giang province for at least 15 years. It recently moved part of its iPad and AirPods production to the Quang Chau Industrial Park. Foxconn has not announced which types of products would be made at the new production facility.
Earlier this month, it was reported that Apple was looking to move Apple Watch and MacBook production to Vietnam for the first time. MacBook design changes have made it practical for the machines to be assembled in the Southeastern Asian country for the first time. Until now, only iPads and AirPods have been assembled in the country.
The move is part of Apple’s effort to lessen the Cupertino firm’s reliance on China for what the company calls FATP – Final Assembly, Test, and Pack.
Apple has stepped up its relocation efforts in recent months, due to the invasion of Ukraine by Russia and the weak response by other countries. China is thought to be emboldened by the response to the Ukraine invasions, increasing the possibility of China invading Taiwan.
China’s Zero COVID-19 policy has led to lockdown after lockdown, creating huge difficulties for production.