Foxconn will invest about $250 million (nearly Rs 20,500 crore) in two new projects in Vietnam, including the production of electric vehicle (EV) components, the world’s largest electronics assembly contractor and local authorities said on Friday.
The move confirms Foxconn’s global plans to become a player in the electric vehicle industry after years of focusing on assembling electronics for Apple and other major brands.
The Taiwanese giant will invest about $250 million in an industrial park in northern Vietnam through its subsidiary Foxconn Singapore, “focusing on the production of electric vehicle parts, controllers and other products to meet future development needs,” the company said in a statement to Reuters.
The new projects will bring the company’s total investment in Southeast Asia’s manufacturing hubs to about $3 billion (nearly Rs 24,600 crore) nearly two decades since it built its first factory there, confirming the company’s broader plans to expand outside China amid ongoing tensions between Beijing and Washington.
Local authorities confirmed they had approved new investment from Foxconn. The largest portion of the new funding, about $200 million, will go into a factory to make electric vehicle chargers and parts, with production scheduled to begin in January 2025 and employ 1,200 people, authorities said.
The remaining $46 million (nearly Rs 375 crore) is for setting up a factory to produce electronics and telecom components, with production to start in October 2024.
Both factories are located in the province’s Song Khoai Industrial Park, 138 kilometers (86 miles) east of Hanoi.
“Foxconn’s Vietnam base dates back 15 years and is one of the key locations in our global footprint,” the company said in a statement to Reuters.
Foxconn also plans to build a new factory in central Vietnam’s Nghe An province with an initial investment of $100 million (nearly Rs 8.2 billion), local authorities in central Vietnam’s Nghe An province said last month.
© Thomson Reuters 2023
