Apple (AAPL.O) supplier Luxshare Precision Industry Co. (002475. SZ) has been granted permission by provincial officials in Vietnam’s northern province of Bac Giang to invest an extra $330 million in its facility there, bringing the total investment to $504 million.
According to a statement released by the authorities in Bac Giang on Wednesday, the new plant will be located on a property measuring 29.1 hectares (72 acres). It will create cables for smart devices, communications equipment, touch pens, smart locating tags, and smartwatches.
The location of the new facility will be announced at a later date. According to the information provided, the structure’s completion is anticipated to take between 12 and 24 months.
It originated in China. In 2019, Luxshare, one of the primary manufacturers of Apple’s AirPods, began investing in Vietnam. The company is increasing its investment in the nation when other manufacturers are looking for further ways to diversify their manufacturing away from China.
Foxconn, an additional Apple supplier, established a new facility earlier this year in central Vietnam and increased its investment in the nation by $250 million to manufacture components for electric cars and telecommunications equipment.
Luxshare did not immediately respond to a request for comment.
In conclusion, Luxshare Precision’s decision to invest an additional $330 million in northern Vietnam is a strategic move with far-reaching implications. This article has provided an in-depth analysis of this significant investment’s economic, technological, and global ramifications, offering a comprehensive understanding of its impact on both regional and international scales.