Goertek to open Vietnam factory as part of Apple’s supply chain diversification
VOV.VN - Apple supplier Goertek is seeking to invest up to US$280 million to establish a wholly-owned subsidiary in Vietnam in order to meet demands for “business expansion and long-term operation” locally, revealed the South China Morning Post (SCMP).
Goertek’s Vietnamese entity will manufacture consumer electronics products from AirPods and smartwatches to virtual reality and augmented reality gear. It is a project that will meet both the Chinese assembler’s future development plans and client demand, according to its filing to the Shenzhen Stock Exchange.
“The project is advantageous to make better use of local resources in Vietnam to enhance the company’s overall competitiveness,” Goertek said.
The company is viewed by Apple as having the potential to become one of the major mainland suppliers of its mixed-reality Vision Pro headset, which is set to launch in early February.
The newswire outlined that the Vietnamese subsidiary, which will be set up through its Hong Kong entity Goertek (Hong Kong) Co, is expected to be located in Bac Ninh province, which has attracted investment from a raft of firms from the Republic of Korea, including consumer electronics and semiconductor giant Samsung Electronics.
Apple has shifted more of its production lines from China after Beijing’s stringent COVID-19 restrictions during the pandemic disrupted the US firm's manufacturing supply chain, impacting its global sales.
Apple has encouraged its contract manufacturing partners to diversify into other countries, including Vietnam, as a means of reducing its reliance on China.
Apple suppliers, including Taiwanese electronics contract manufacturer Foxconn Technology Group, have invested up to US$16 billion in an effort to reduce their dependence on China, by relocating facilities to India, Vietnam, Mexico, as well as the US, according to a report by AppleInsider, citing research by investment bank TD Cowen.
