According to Reuters, a global news agency, the screen maker BOE Technology Group is planning to invest USD 400 million to set up company and build two factories in Vietnam.
BOE is negotiating to lease dozens of hectares of land in the North of Vietnam. They already have a small factory in the South, mainly supplying screens to Samsung and LG Electronics.
BOE plans to lease up to 100 hectares and use 20% of this area for a remote control system factory at a cost of USD 150 million. Another 50 hectares will be used to build a screen manufacturing factory, with a cost of USD 250 million. Their suppliers will use the remaining 30 hectares of land, between now and 2025.
BOE will focus on producing OLED screens instead of LCDs at this factory. Apple recently used OLED screens for new generations of iPhones. Apple has cooperated with BOE since 2021.
BOE is China’s largest display manufacturer by volume. It has been forecasted that BOE will become the largest supplier of screens for new iPhone models in 2024.
The plan shows the efforts of technology firms, led by Apple and Foxconn, in reducing their dependence on supply chains in China especially in the context of trade tensions between Beijing and Washington, as well as China’s epidemic prevention policies.
Vietnam has recently attracted large investments from electronics giants for establishing company in Vietnam. Hon Hai Precision Industry and Luxshare Precision Industry also plan to assemble many Apple products in Vietnam, such as laptops or tablets.