Foxconn set to expand iPhone operations in Vietnam due to its iPhone production disruptions at their Zhengzhou plant in Q4-22
Foxconn’s iPhone plant in the central Chinese city of Zhengzhou, known as iPhone City, was rocked by an exodus of tens of thousands of employees and violent worker protests amid stringent pandemic control measures imposed during a Covid-19 outbreak that began in late October. This disaster hurt Apple's shipments of high-end iPhones during the crucial holiday season.
So as to avoid such a disaster from effecting iPhone shipment again, Foxconn Technology Group have stated that they've secured a new site in Vietnam,
Taiwan-listed Foxconn, formally known as Hon Hai Precision Industry, has signed a lease with Saigon-Bac Giang Industrial Park Corp to occupy a plot of 45 hectares (111 acres) for around US$62.5 million to meet “operational needs and expand production capacity”, according to a recent exchange filing.
The site, located in the Quang Chau Industrial Park in Bac Giang province east of Hanoi, was rented through Foxconn’s subsidiary Fulian Precision Technology Component Co. The lease will run through February 2057, the company said.
Amid the disruptions, Foxconn in late December finalized plans to relocate some of its MacBook production to Vietnam, with the first products expected to ship as early as May this year, according to a report by Nikkei Asia Review at the time.
Foxconn also plans to quadruple the workforce at its iPhone-making Indian plant over two years. Source.