TAIPEI (TVBS News) — Hon Hai Precision Industry Co., also known as Foxconn, has plans to invest approximately US＄250 million in setting up two new component factories in northern Vietnam, according to reports. One of the factories will specialize in producing components for electric vehicles (EVs), signaling Hon Hai's continued diversification into the EV industry, local media said on Tuesday (July 4).
The chosen location for the factories is the industrial zone in Quang Ninh Province, about 138 kilometers east of Hanoi. Local officials have welcomed this investment, stating it will contribute to the region's economic growth. Establishing these facilities in Vietnam is part of Hon Hai's efforts to reduce its reliance on Apple's iPhone assembly.
Chau Nghia Van, head of Hon Hai's operations in Vietnam, expressed his satisfaction with the decision to invest in Quang Ninh during the ceremony to receive the investment registration certificate. Having been active in Vietnam for 16 years, Hon Hai's choice to expand its operations showcases its confidence in the region.
The two planned factories will have an estimated investment of US＄200 million for producing EV charging equipment and US＄46 million for manufacturing bare wafers and communication components. The completion of the facilities is scheduled for 2024, and the workforce is expected to exceed 700 employees.
With several electronics manufacturing companies choosing to invest in northern Vietnam, the region has become an attractive alternative to China for mitigating supply chain risks. Other companies, such as Wistron in Haiphong City and Quanta in Nam Dinh Province, have also expanded their operations in Vietnam. Hon Hai is reportedly considering also establishing a factory in Nghe An Province in central Vietnam.