Foxconn, formally known as Hon Hai Precision Industry, has signed a lease with Saigon-Bac Giang Industrial Park Corp in Vietnam. This latest deal comes after Foxconn’s major iPhone plant in Zhengzhou, China was disrupted by the Chinese Communist party’s quixotic, failed “Zero COVID” lockdowns.
Iris Deng for the South China Morning Post:
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.
The site, located in the Quang Chau Industrial Park in Bac Giang province east of Hanoi, was rented through Foxconn’s subsidiary Fulian Precision Technology Component Co. The lease will run through February 2057, the company said.
Foxconn signed a US$300 million agreement with a Vietnamese developer last August to build a new factory in Bac Giang, where it already produces iPads and AirPods…
Foxconn’s latest deal in Vietnam comes after its iPhone plant in the central Chinese city of Zhengzhou – the largest in the world and known as iPhone City – was rocked by an exodus of tens of thousands of employees and violent worker protests amid stringent pandemic control measures imposed during a Covid-19 outbreak that began in late October.
“Covid-19 challenges … significantly impacted the supply of iPhone 14 Pro and iPhone 14 Pro Max and lasted through most of December,” Apple chief executive Tim Cook said during an earnings call earlier this month, referring to the turmoil at Foxconn Zhengzhou.
The California-based tech giant surprised the market as it reported a revenue decline in the December quarter, blaming supply disruptions as a result of China’s pandemic controls. The company reported a 5 per cent year-on-year drop to US$117 billion in revenue for the quarter ended December, its first quarterly revenue decline since early 2019.
MacDailyNews Take: The quicker that alternatives to China can be up and running, the better.
It’s smart for both Apple and Foxconn to diversify assembly outside of China. There’s no sense having all of your eggs in one basket. — MacDailyNews, April 2, 2019
Apple cannot divest their dependence on China quickly enough (because they started years too late). – MacDailyNews. August 17, 2022
Diversify, diversify, diversify – especially away from CCP-controlled China. – MacDailyNews, October 19, 2022
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Great. They are moving away from one commie hostile sh**hole to another. Cook needs to be fired for his horrible job of not diversifying. They need to build at leas SOME things here in the USA. Some in Europe. Some in Brazil. This is basic stuff and he’s failed at it.
LOL… the guy overseeing and guiding a multi-trillion dollar company is failing.
Have you ever been there ? I have multiple times over the last 20 years and seriously Vietnam is communist in name only. It’s more accurate to describe it as a socialist society. There is a lot of free enterprise and every time I go there I can wander around freely, chat to whoever I want and never get hassled by the government or police. It’s not as unregulated as western countries but the people are pretty much left alone. Many times Vietnamese people have openly criticised the government to me.
AC will have a 111-acre hole in his heart when he realises his vendetta against Apple is a cynical waste of time. Sad.