Apple supplier Luxshare Precision to invest $300 million in North Vietnam

Apple supplier Luxshare Precision Industry Co has secured approval for a $330 million expansion of its facility in Bac Giang, Vietnam, bringing the total investment to $504 million, as confirmed by provincial authorities. The additional investment, earmarked for Luxshare-ICT, the company's Vietnamese arm, will be used to establish a new facility spanning 29.1 hectares. 

This site will focus on producing cables for various smart devices, communication equipment, touch pens, smart positioning tags, and smartwatches. The projected completion time for the facility is estimated to be between 12 to 24 months.

Luxshare, headquartered in China and a key manufacturer of Apple's AirPods, initiated its investments in Vietnam in 2019. This expanded commitment to the country aligns with the broader trend of manufacturers diversifying their production beyond China. 

In a similar vein, Foxconn, another Apple supplier, recently inaugurated a new factory in central Vietnam and increased its investment in the country by $250 million, with a focus on manufacturing electric vehicles and telecom components.

Despite the reported developments, Luxshare has yet to respond to inquiries for additional comments. The move underscores the ongoing strategic shifts within the technology supply chain, with companies actively exploring alternative production locations.

(With Reuters inputs)