Foxconn secures 111-acre site in Vietnam as Apple assembler continues to diversify production away from China

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.
The logo of electronics contract manufacturer Foxconn Technology Group, formally known as Hon Hai Precision Industry, is displayed at its headquarters in Taipei. Photo: Agence France-Presse
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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