Chinese display maker and Apple supplier BOE Technology Group plans to invest a substantial sum to build two factories in Vietnam, Reuters reports Wednesday citing “two people familiar with the matter.”
<a href=”https://www.reuters.com/article/idUSL8N33V0WN>Francesco Guarascio for Reuters:
The investment may total up to $400 million.
The plan underscores efforts by technology firms led by U.S. iPhone maker Apple and Taiwanese device assembler Foxconn to lower supply chain exposure to China amid trade and geopolitical tension between Beijing and Washington and production disruption caused by China’s COVID-19 containment measures.
BOE is in talks to rent dozens of hectares of land in north Vietnam to add to its relatively small plant in the south that supplies mostly television screens to South Korea’s Samsung and LG Electronics Inc, the people said, declining to be identified as negotiations were confidential.
See AlsoFollowing Patent Deal, Every Time Apple Sells An iPhone, Ericsson Gets A Bit Of Money | TechCrunchFrom A to Ultra: How the M3 stacks up to every other Apple processorApple just announced its new iPhone 14—here's how much you'd have if you invested $1,000 a decade agoTim Cook Confirms Apple Will Buy TSMC Chips Manufactured in ArizonaHon Hai Precision Industry Co Ltd (Foxconn) and China’s Luxshare Precision Industry also make or plan to assemble a number of Apple products in the area such as laptop and tablet computers.
MacDailyNews Take: The transfer of eggs out of a single basket in China continues belatedly.
In October 2021, Apple added BOE to its roster of suppliers for 6.1-inch iPhone 13 OLEDs.
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!
Related
Reader Feedback
This site uses Akismet to reduce spam. Learn how your comment data is processed.
Apple’s iPhone design chief Tan Tang to work with Jony Ive, Sam Altman on AI devices
iPhone design executive Tang Tan is set to leave Apple in February to join Ive’s LoveFrom design studio, working on an AI project with…
How to bundle Apple subscriptions – and save – with Apple One
Apple’s “Apple One” bundles up to six Apple subscriptions for one lower monthly price, including up to 2TB of iCloud+ storage. And with…
Apple appeals ITC ban that halted Apple Watch sales in the U.S.
Apple said in court documents filed Tuesday the company will suffer “irreparable harm” if the ban stays in place, since the models are…
Tokyo tightens grip on tech giants: Anti-monopoly law targets Apple, other app stores
Japan is flexing its regulatory muscles, drafting an anti-monopoly law aimed at reining in the domineering app store policies of Apple and…
Apple’s new iPhone 15 Plus ad spotlights insanely long battery life
Apple’s new ad for iPhone 15 Plus features the song “Way Too Long” by Doe Boy and shines a spotlight on the device’s “loooooong” battery…
As an industry expert with a demonstrable understanding of the technology and manufacturing landscape, I can provide valuable insights into the recent developments involving BOE Technology Group, a Chinese display maker and key supplier to Apple. My expertise in the field is grounded in a comprehensive understanding of the global supply chain dynamics, particularly within the technology sector.
The article dated January 11, 2023, reports that BOE Technology Group is planning to invest a substantial sum, potentially up to $400 million, to build two factories in Vietnam. This strategic move aligns with the broader trend observed among technology firms, including Apple and Foxconn, to diversify their supply chain and reduce exposure to China. The motivation behind such decisions is influenced by trade tensions and geopolitical considerations between Beijing and Washington, as well as disruptions caused by the COVID-19 containment measures in China.
BOE Technology Group is in negotiations to secure land in north Vietnam, supplementing its existing plant in the south, which primarily supplies television screens to Samsung and LG Electronics Inc. This expansion aims to enhance production capacity and mitigate risks associated with concentration in a single location. Notably, other major players like Foxconn and Luxshare Precision Industry are also involved in or planning to assemble Apple products in the same region, including laptops and tablet computers.
This move by BOE follows Apple's decision in October 2021 to include BOE as one of its suppliers for 6.1-inch iPhone 13 OLEDs. The collaboration between BOE and Apple underscores the strategic partnerships that major technology companies form to ensure a stable and diversified supply chain.
In summary, the investment by BOE Technology Group in building two factories in Vietnam is a significant step in the ongoing trend of technology companies diversifying their manufacturing locations to mitigate risks and ensure a more resilient supply chain. This strategic shift is a response to the complex interplay of geopolitical, trade, and public health factors that impact global manufacturing and supply chain operations.