Taiwan’s Quanta Computer, one of the leading contract manufacturers of Apple’s MacBooks, has announced plans to construct a factory in northern Vietnam. The Vietnamese government stated that Quanta signed an agreement with the authorities of Nam Dinh province, 90km south of Hanoi, to build the facility at an industrial park. This would be Quanta’s ninth factory globally and would initially cover an area of 22.5 hectares. However, the statement did not reveal its capacity or a timeline for the construction.
Local media outlets reported that Quanta would invest $120 million in the new factory. This move marks the latest in a growing trend of tech companies shifting their supply chains away from China to reduce the impact of trade tensions between the United States and China. In addition, Vietnam is becoming an increasingly popular destination due to its low labor costs and favorable investment policies.
While the Vietnamese government has been actively courting foreign investors to help boost the country’s economic growth, the government has also faced criticism for its labor practices, environmental standards, and restrictions on freedom of expression. As such, companies that move their operations to Vietnam will need to be vigilant about compliance with local laws and regulations.
This announcement from Quanta comes amid global semiconductor supply chain disruptions, which have impacted many tech companies, including Apple. However, Quanta’s new factory is unlikely to have an immediate impact on Apple’s supply chain, as the company has not yet revealed which products the new factory will produce. Nevertheless, this move by Quanta is a clear indication of the ongoing shift in global supply chains, and other tech companies are likely to follow suit in the coming years.