The Apple supplier BOE from China wants to build new

The Apple supplier BOE from China wants to build new display factories in Vietnam

China’s largest display maker, BOE Technology Group, which supplies products to tech giants like Apple and Samsung, is investing in two new factories in Vietnam. According to available data, about $400 million is being spent on this need.

    Image source: BOE

Image source: BOE

According to industry sources, the plan relates to iPhone maker and Apple partner Foxconn’s intent to reduce reliance on its supply chain in China amid the ongoing US-China geopolitical conflict and production disruptions caused by the impact of China’s tough lockdown measures in China caused to reduce COVID-19 outbreaks.

BOE intends to lease dozens of acres of land in northern Vietnam to set up a manufacturing facility in addition to the company’s existing small factory in the south of the country. The latter mainly supplies displays for Samsung and LG televisions.

Recently, northern Vietnam has become increasingly attractive to investors and has become a major center for the production of smartphones, computers and other electronics, including Apple and Samsung. In addition to BOE, Foxconn of Taiwan and Luxshare Precision Industry of mainland China also plan to expand production of Apple products here.

According to reports, BOE intends to lease up to 100 hectares, one-fifth of which will be used for the production of specialty devices and the rest – for the production of OLED displays. The company intends to spend $250 million to build a 50-hectare facility. The remaining 30 hectares will be used until 2025.

BOE is on Apple’s list of manufacturing partners, with the latter using OLED technology in the latest iPhones. According to the forecasts of the well-known market expert Ming-Chi Kuo, the Chinese manufacturer should become the largest supplier of panels for new iPhones by 2024. However, Bloomberg has data that Apple intends to use displays with its own design in the next year.

One way or another, sources say that BOE’s intentions to set up a company in Vietnam are not directly related to deliveries to the American maker of popular smartphones. Samsung, for example, produces half of its smartphones in Vietnam, and another South Korean tech giant, LG, is looking to expand its business in the country. Perhaps new displays are needed for their products.

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Johnson Smith

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