BOE Technology Group, a Chinese display maker and a supplier to both Apple Inc and Samsung Electronics, intends to invest up to USD 400 million to develop two factories in Vietnam.
BOE is in discussions to rent land in the northern region to supplement its relatively small facility in the south, which mostly provides TV screens to Samsung and LG. At a cost of USD 150 million, BOE intends to rent up to 100 hectares, of which 20% will be used for a factory producing remote control systems. The remaining space will be used for displays; BOE plans to invest USD 250 million in a plant on 50 hectares, while suppliers will occupy the remaining 30 hectares, all by 2025.
BOE plans to manufacture more advanced organic light-emitting diode (OLED) screens at the site instead of liquid crystal displays (LCDs). Apple uses OLED panels in its most recent iPhone handsets, and BOE was listed among its manufacturing partners until 2021.
Electronics giants have made significant investments in Northern Vietnam in recent years, making it a major hub for the production of smartphones, computers, and cameras, including flagship products from Apple and Samsung. A number of Apple goods, including laptops and tablets, are either made or will be assembled in the region by Luxshare Precision Industry in China and Hon Hai Precision Industry Co Ltd (Foxconn).
(Sources: Reuters, VietnamPlus)