Apple Supplier Foxconn To Invest $300 Million In Vietnam Facility, Expand Production Outside China

Days after news reports indicated that Apple Inc AAPL is in talks to make Watches and MacBooks in Vietnam for the first time, its Taiwanese supplier Foxconn has reportedly signed a memorandum to expand its facility in the north of the country.

What Happened: Foxconn has signed a $300 million memorandum of understanding with Vietnamese developer Kinh Bac City as it looks to diversify and boost production outside China, according to a Reuters report, citing state media. 

The report noted that the new factory, spread over 50.5 hectares (125 acres) in Bac Giang province, would generate 30,000 local jobs.

See Also: Apple Supplier Foxconn Being Pushed By Taiwan To Unwind $800M In Chinese Chipmaker: FT

An email sent to Foxconn by Benzinga seeking comments didn't elicit any response as of press time.

The Southeast Asian country is Apple's most crucial production hub outside China. It produces a wide range of products for the tech giant, including iPads and AirPods.

This came after Vietnamese Prime Minister Pham Minh Chinh, during his recent U.S. trip, visited Silicon Valley tech giants, including Apple, to meet CEO Tim Cook. During the meeting, Chinh affirmed his commitment to creating a fair, transparent, and market-based business environment to help U.S. firms and investors gain ground in Vietnam.

Apart from Apple, Foxconn supplies to big techs like Alphabet, Inc. GOOGL GOOG, Dell Technologies, Inc. DELL, and Sony Group Corporation SONY.

Price Action: According to data from Benzinga Pro, Hon Hai Precision Industry Co. Ltd HNHPF— better known as Foxconn — OTC shares closed 0.96% lower on Friday. Apple shares closed 1.51% lower at $171.52 apiece.

Check out more of Benzinga's Europe and Asia coverage by following this link.

Photo: Courtesy of ILO Asia-Pacific on Flickr