Apple supplier BOE plans new factories in Vietnam -sources
HANOI听–听Chinese display maker听叠翱贰听Technology Group Co Ltd., a听蝉耻辫辫濒颈别谤听of both听础辫辫濒别听Inc. and Samsung Electronics Co Ltd.,听辫濒补苍蝉听to invest a substantial sum to build two听蹿补肠迟辞谤颈别蝉听in听痴颈别迟苍补尘, two people familiar with the matter said.
The investment may total up to $400 million, one of them said.
The plan underscores efforts by technology firms led by U.S. iPhone maker聽聽and Taiwanese device assembler聽聽to lower supply chain exposure to China amid trade and geopolitical tension between Beijing and Washington and production disruption caused by China’s COVID-19 containment measures.
叠翱贰听is in talks to rent dozens of hectares of land in north听痴颈别迟苍补尘聽to add to its relatively small plant in the south that supplies mostly television screens to South Korea’s Samsung and LG Electronics Inc., the people said, declining to be identified as negotiations were confidential.
叠翱贰听declined to comment.
Northern听痴颈别迟苍补尘聽has in recent years attracted significant investment from electronics giants, becoming a major hub for the production of smartphones, computers and cameras, including flagship goods from听础辫辫濒别听and Samsung.
Hon Hai Precision Industry Co Ltd (Foxconn) and China’s Luxshare Precision Industry聽also make or plan to assemble a number of听础辫辫濒别听products in the area such as laptop and tablet computers.
叠翱贰听辫濒补苍蝉听to rent up to 100 hectares and use 20% for a plant making remote control systems at a cost of $150 million, one of the people said.
The rest would be for displays, with听叠翱贰听spending $250 million to build a plant on 50 hectares while听蝉耻辫辫濒颈别谤s would use the remaining 30 hectares, all by 2025, the person said.
叠翱贰听辫濒补苍蝉听to make the more sophisticated organic light-emitting diodes (OLED) screens at the site rather than liquid-crystal displays (LCDs), the person said.
Apple, which included听叠翱贰听in its 2021 list of manufacturing partners, uses OLED screens for its latest iPhone smartphones.
China’s biggest display maker by output is set to become the largest听蝉耻辫辫濒颈别谤听of displays for听苍别飞听iPhones by 2024, analyst Kuo Ming-chi at TF International Securities forecast last week.
The US tech giant, however,听辫濒补苍蝉听to start making mobile screens in-house by next year, Bloomberg聽聽on Wednesday.
础辫辫濒别听declined to comment.
BOE‘s听痴颈别迟苍补尘聽plan is not specifically aimed at supplying听础辫辫濒别, the person said.
Customer Samsung, the world’s largest smartphone maker, produces half of its handsets in听痴颈别迟苍补尘聽while LG has a large operation in the country and is聽听苍别飞听investment. – Reuters
