Apple supplier Foxconn announced the creation of a major new factory in Vietnam and a $300 million investment to expand its current operations in the country. The decision comes as Apple attempts to move parts of its manufacturing process out of China.
The new factory will sit on 111 acres just outside of Saigon, with Foxconn signing a 35-year lease worth approximately $62.5 million, according to a the South China Morning Post. The new factory will possibly make Macbooks, a first for the country that already produces AirPods, Apple Watches, and iPads.
Apple told suppliers late last year to plan for a shift in manufacturing out of China and into emerging markets such as India and Vietnam, according to The Wall Street Journal. The company cited supply chain tie-ups, riots at Foxconn’s Zhengzhou factory, and China’s extreme covid-19 restrictions as reasons for the move.
Earlier this month, Apple announced it had missed earnings expectations in the last fiscal quarter, posting the largest quarterly revenue decline in over five years and the first year-over-year sales decline since 2019. CEO Tim Cook blamed the general macroeconomic environment, as well as specific production issues in China affecting the production of the iPhone 14.
Apple manufacturing, by the numbers
$2.45 trillion: The value of Apple, the most valuable tech company in the world
$1.8 billion: The net worth of Apple CEO Tim Cook
$799: The starting price of the basic iPhone 14 model
$430: The average monthly salary of a Chinese worker assembling iPhones in a Foxconn factory
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