iPhone factory will soon appear in Vietnam?

iPhone factory will soon appear in Vietnam?

LINH CHI- Thursday, June 16, 2022 16:11 (GMT+7)
Pegatron, Apple's iPhone manufacturing partner, is planning to expand factories in other countries outside the Chinese market, including Vietnam.

Currently, Pegatron - Apple's partner, is producing about 20-30% of iPhone production for Apple. The prolonged social distancing in China in recent times has made the company more serious about expanding operations to other countries.

In April, Pegatron was forced to suspend operations at two key factories in Shanghai and Kunshan. This situation has seriously affected production and delivery activities to partners. To date, the restrictions have been lifted, but the company still faces many problems.

According to Reuters, Pegatron will consider expanding production in other countries as a result of the COVID-19 lockdown in China. The company is also facing a labor shortage and recruitment in China has become increasingly difficult in the past 7-8 years.

Pegatron Chairman Liao Syh Jang told a shareholder meeting in Taipei (Taiwan, China) that the company could not have foreseen the situation of production restriction for 2 months. As such, Pegatron is also looking to expand operations in Vietnam, India, Indonesia and North America to address workforce shortages during peak seasons, as well as increase production productivity.

Thanks to factories located around the world, Pegatron is more flexible when dealing with issues such as COVID-19 lockdowns or labor shortages. Previously, according to Nikkei, Apple will first produce iPads in Vietnam, also citing the bans in Shanghai and surrounding areas. BYD, one of Apple's leading iPad assemblers, has helped Apple build production lines in Vietnam and will soon produce small quantities of the tablet in the country.

With the above move, the iPhones will probably be manufactured in Vietnam in the not too distant future. Before Pegatron, Foxconn also announced that they were expanding their operations to other markets outside of China, including Vietnam.