Date: July 3, 2023
In a strategic move aimed at expanding its presence in the electric vehicle (EV) and telecommunications sectors, Foxconn, the Taiwanese multinational electronics contract manufacturing company, has announced plans to invest $250 million in Vietnam. The investment will be directed towards establishing manufacturing facilities specifically dedicated to EV and telecom parts production. After concentrating for years on assembling electrical devices for Apple and other major companies, the move underlines Foxconn’s global intentions to become a participant in the EV market.
The new manufacturing facilities will be set up in Bac Giang province, situated in the northern part of Vietnam. Foxconn’s investment in Vietnam aligns with the company’s strategy to diversify its operations beyond its traditional contract manufacturing business. By entering the EV and telecom parts market, the company aims to capitalize on the growing demand for electric vehicles and telecommunications infrastructure worldwide.
The move also signifies Foxconn’s continued efforts to expand its manufacturing footprint outside of China. Amid ongoing tensions between Beijing and Washington, the new projects would bring its total investment in the southeast Asian manufacturing powerhouse to around $3 billion in the almost 20 years since it constructed its first facility there. This would corroborate its larger aspirations to grow outside of China.
Foxconn’s investment in Vietnam is expected to not only boost the country’s EV and telecom parts manufacturing capabilities but also contribute to the overall development of the domestic electronics industry. Local officials acknowledged that they had approved Foxconn’s additional investment.
A facility that will make EV chargers and component parts will receive the majority of the additional investment, or roughly $200 million, and manufacturing is expected to begin in January 2025 with a staff of 1,200, according to officials. The remaining $46 million will be used to build a factory that will make electronics and telecom components, with work starting in October 2024.
Reference link:
https://www.reuters.com/technology/foxconn-invest-246-mln-2-projects-northern-vietnam-2023-06-30/
