Foxconn Leases Land in Vietnam to Expand Manufacturing Capacity Amidst Supply Chain Disruptions

The lease contract is valid until February 2057 and was signed by Foxconn's subsidiary, Fulian Precision Technology Component, with Saigon-Bac Giang Industrial Park Corporation to expand its manufacturing capacity and meet operational needs.

In August 2022, Foxconn signed a $300 million agreement with a Vietnamese contractor to build a new factory in Bac Giang, where it already produces iPads and AirPods, although the company has not disclosed the type of products that will be manufactured at the new facilities.

This move by Foxconn comes amidst disruptions at the world's largest iPhone manufacturing plant in Zhengzhou, China, where strict pandemic control measures have caused tens of thousands of workers to leave the factory and protest violently. 

Apple CEO Tim Cook has acknowledged that the chaos at Foxconn's Zhengzhou plant has significantly impacted the supply of iPhone 14 Pro and iPhone 14 Pro Max, lasting until almost the end of December 2022.

The disruptions in the supply chain have caused a decline in Apple's revenue in Q4 2022, which surprised the market. The company's revenue dropped by 5% from the same period in 2021, amounting to $117 billion, making it the first quarterly revenue decline since the beginning of 2019.

Source: ZingNews