Apple moving iPad and MacBook assembly from China to Vietnam — report

From Reuters’ “Vietnam gives Foxconn unit license for $270 million plant to produce laptops, tablets” posted Monday:

The plant, to be developed by Fukang Technology, will be located in the northern province of Bac Giang and will annually produce eight million units, the government said in a statement on its website…

Foxconn is moving some iPad and MacBook assembly to Vietnam from China at the request of Apple Inc, a person with knowledge of the plan said in November, as the U.S. firm diversifies production to minimize the impact of Sino-U.S. trade tensions.

My take: Foxconn can move fast when it has to.

4 Comments

  1. Gregg Thurman said:
    My take: Foxconn can move fast when it has to.

    If true Foxconn will be online in time for 2023 production, if not sooner. I’ll wager the facility will be easily expandable to much greater capacity.

    2
    January 18, 2021
  2. David Drinkwater said:
    I’m surprised that its on;y $270 million, but then, this is an assembly facility, not a semiconductor foundry.

    For contrast, TI’s new 300 mm (12″ wafer) Fab in RIchardson was billed at $3.1 billion.

    www dot dallasnews dot com/business/technology/2019/04/18/texas-instruments-to-build-3-1-billion-chip-plant-create-nearly-500-jobs-in-richardson/

    3
    January 18, 2021
    • Jerry Doyle said:
      @David Drinkwater: The article says: “…. Foxconn has so far invested $1.5 billion in Vietnam and plans to raise its investment by $700 million and recruit 10,000 more local workers this year, the government said.” That’s not 3.1B, but investment costs in Vietnam are far less than investment costs for TI in Richardson.

      4
      January 18, 2021
  3. Jerry Doyle said:
    Apple, MS, & Google started looking in 2019 and ramped up their search in 03/2020 to relocate supply chain operations elsewhere in SE Asia. Below is an informative article on the initiation of the transition. This news has been known for months about Vietnam, other than the specific costs of investment. Apple started moving its AirPod production to Vietnam in 2019.

    https://www.cnbc.com/2020/03/05/coronavirus-apple-microsoft-google-look-to-move-production-away-from-china.html

    1
    January 18, 2021

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