Chinese display manufacturer BOE Technology Group Co Ltdwho is a provider of Manzana inc and samsung Electronics Co Ltd, plans to invest a large sum of money in order to build two new factories in Vietnamtwo people familiar with the matter said. The investment could reach up to 400 million dollars, commented one of them.
The plan highlights efforts by technology companies led by US iPhone maker Apple and Taiwanese device assembler Foxconn to reduce supply chain exposure to China amid trade and geopolitical tension between Beijing and Washington and production disruption that was caused by the COVID-19 containment and restriction measures in China.
BOE is in talks to lease tens of hectares of land in northern Vietnam to add to its relatively small plant in the south that mainly supplies TV screens to Samsung and LG. Electronics Inc of South Korea, tell you the same two people who declined to be named because the negotiations were confidential, also BOE declined to comment.
In recent years North Vietnam has secured significant investment from electronics giants, thereby becoming a major center for the production of smartphones, computers and cameras, including products created by Apple and Samsung.
Hon Hai Precision Industry Co Ltd (Foxconn) (2317.TW) and China’s Luxshare Precision Industry (002475.SZ) also make or plan to assemble a number of Apple products in the area, such as laptops and tablets.
BOE plans to rent up to 100 hectares and use 20% for a plant that makes remote control systems at a cost of $150 million, one of the people said. The remainder would be for exhibitions, with BOE spending $250 million to build a plant on 50 hectares, while vendors would use the remaining 30 hectares. All of this would take place by 2025.
BOE is looking to make more sophisticated organic light-emitting diode (OLED) displays on site instead of liquid crystal displays (LCDs), the person said. These are the screens that he has been using since 2021 since BOE became one of the company’s manufacturing partners.
China’s largest display maker by production to become the largest supplier of displays for new iPhones by 2024, analyst Kuo Ming-chi at TF International Securities forecast last week. However, the US tech giant plans to start manufacturing mobile displays in-house next year, Bloomberg reported on Wednesday. Apple had no comment.
The BOE’s Vietnam plan is not specifically aimed at supplying Apple, however, the person said.
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Source-www.infobae.com