(MENAFN-IANOS)
Hong Kong, Feb. 16 (IANS) Apple’s biggest supplier, Foxconn, has secured a new site in Vietnam, as the Taiwanese giant moves production out of China after facing disruptions to the primary source chain expired last year after the zero-Covid policy was lifted.
According to the South China Morning Post, Taiwanese company Foxconn (formerly known as Hon Hai Precision Industry) has signed a lease agreement with Saigon-Bac Giang Industrial Park Corp to occupy a 45-hectare plot of land for about $62. 5 million to meet operational desires and expand production capacity.
In an exchange file, the Taiwanese giant said the lease would run until February 2057.
“Foxconn signed a $300 million deal with a Vietnamese developer last August to build a new factory in Bac Giang, where it already produces iPads and AirPods,” according to the report.
Foxconn also plans to build its plant in India over the next two years.
The company announced a $500 million investment in its Indian subsidiary last December.
Apple CEO Tim Cook, during the company’s quarterly earnings call earlier this month, said the difficult Covid-19 situations “had a significant effect on the iPhone 14 Pro and iPhone 14 Pro Max offering and lasted through December. “
Meanwhile, Apple’s parent company posted strong gains in January that rose 48. 2% (year-on-year), after facing significant Covid-related disruptions in October and November 2022.
“With operations returning to general and product shipments expanding at the Zhengzhou campus, January earnings saw strong double-digit expansion, either monthly or year-on-year,” Foxconn said.
The company reported that it took a step forward in sourcing components and accepting visitors. Electronics and IT products for smart customers posted double-digit growth.
Foxconn’s largest iPhone production plant in China, hard hit by Covid-related disruptions, recovered and production reached about 90% of its maximum capacity in early January.
Foxconn Technology Group’s facility in the central Chinese city of Zhengzhou is the world’s largest iPhone factory, which has noticed primary disruptions in the last 3 months of 2022 through pandemic controls.
In a New Year’s message, Foxconn Chief Executive Young Liu said the Taipei-based company could see a path to travel.
–IANOS
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