Foxconn continues to expand production in Vietnam

May 17, 2024 | 08:26

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Apple's main supplier, Foxconn, continues to expand its production in Vietnam with a focus on computing products.

Foxconn continues to expand production in Vietnam

The information was shared by Foxconn spokesperson James Wu during an investor conference call on first quarter financial results on May 14.

"We are a technology manufacturing service company. Thus, we mainly base our development on customer requirements globally. This includes production capacity planning as well as product design. After discussion with customers, we select the optimal production locations for customers," Wu said.

"In terms of production locations, we will mainly focus on expanding production in China, India, Mexico, and Vietnam. In China, we will focus on automation and new business segments. In India, we will focus on smart consumer products. In Vietnam, we will focus on computing products. And in the Americas, we will focus on e-vehicles and AI components for cloud networking products," he added.

Foxconn has over 200 sites globally, which can help provide geographically segmented production advantages to its customers, as well as provide more opportunities for growth for the group.

On capital expenditures, Foxconn saw a 14 per cent growth on-year for 2023. The company expects growth of capital expenditure for this year to be higher than 2023’s 14 per cent growth.

Foxconn entered the Vietnamese market in 2007, in the northern provinces of Bac Ninh, Bac Giang, and Vinh Phuc, and has consistently expanded its operations here. The company has invested $3.2 billion in Vietnam so far.

In June 2023, Foxconn received investment certificates for two new projects in the northern province of Quang Ninh, worth total capital of $250 million.

Foxconn earns $317 million in after-tax profit in Vietnam

The world's largest contract manufacturer and assembler of electronics, Hon Hai Precision Industry Co., Ltd., trading internationally as Foxconn, outperformed its industry rivals last year, reportedly earning VND7.5 trillion ($317 million) in after-tax profit from its 16 Vietnamese plants.

Electronics assemblers cashing in

Foreign-invested manufacturers and assemblers of electronics products have generated big profits from Vietnam, which is the foundation for their consecutive expansion in the country.