Foxconn Plans $250 Million Investment in Vietnam for Electric Vehicle and Telecom Parts Manufacturing
Foxconn, the world’s largest contract electronics assembler, is poised to invest approximately $250 million in two new ventures in Vietnam, as reported by local authorities on Friday. This move demonstrates Foxconn’s ambition to enter the electric vehicle (EV) industry, following years of focus on manufacturing electronic products for major brands like Apple.
The Taiwanese company, through its subsidiary Foxconn Singapore, intends to invest around $250 million in an industrial park located in northern Vietnam. The investment will primarily target the production of EV components, controllers, and other related products to meet future development needs, according to a statement provided to Reuters. This new investment will bring Foxconn’s total investment in the Southeast Asian manufacturing hub to roughly $3 billion over the past two decades, signifying its broader strategy to expand beyond China amidst ongoing tensions between Beijing and Washington.
Local authorities have confirmed approval of Foxconn’s investment plans. The majority of the funding, approximately $200 million, will be allocated to a factory dedicated to manufacturing EV chargers and components. This facility is expected to commence operations in January 2025 and will employ a workforce of 1,200 people. The remaining $46 million will be invested in a plant focused on producing electronics and telecommunication components, with production slated to begin in October 2024. Both facilities will be located in the Song Khoai Industrial Park, situated 138 km (86 miles) east of Hanoi.
In a statement to Reuters, Foxconn emphasized the significance of its base in Vietnam, which has been a key location in the company’s global footprint for over 15 years. Additionally, Foxconn plans to establish a new factory in Vietnam’s central province of Nghe An, with an initial investment of $100 million, as announced by local authorities last month.