Apple and Samsung supplier BOE, reportedly planning to build new factories in Vietnam

According to the reports, Chinese display producer BOE Technology Group—a supplier to both Samsung and Apple—plans to erect new factories in Vietnam. According to one of the reports, the total investment may cost about $400 million. The plan might be an indication of Apple and Foxconn's efforts to reduce their reliance on China in their supply chains as trade and geopolitical tensions between China and the US are on the rise. Additionally, the strict COVID-19 lockdowns imposed by China are causing production disruptions in the former. According to one of the sources, BOE has entered negotiations to lease several hectares of land in North Vietnam to expand its plant in the south, which is in charge of providing television screens and other equipment to LG Electronics and Samsung in South Korea. [caption id="" align="aligncenter" width="770"] Image credit- Daily hunt[/caption] According to the reports,  major IT companies have made substantial investments in Northern Vietnam in recent years, making it a key location for the manufacturing of Apple and Samsung's smartphones, cameras, and other technologies. Also read: TSMC is preparing to manufacture Apple's 3nm chips Hon Hai Precision Industry Co. and China's Luxshare Precision Industry are producing or will assemble a variety of Apple products in the area, including laptops and tablets. According to one of the sources, BOE plans to invest $150 million in the rental of up to 100 hectares, 20% of which would be utilised for a factory that makes remote control systems. [caption id="" align="aligncenter" width="800"] Image credit - Bloomberg News[/caption] A facility on 50 hectares would be built by BOE for $250 million by 2025, and suppliers would use the remaining 30 hectares for displays. As part of two-factor authentication in 2023, Apple iOS 16.3 will introduce physical security keys to help secure Apple ID. The source claims that BOE plans to replace liquid crystal displays with more modern organic light-emitting diode (OLED) screens at the facility (LCDs). The most recent iPhone models feature OLED panels, and BOE was mentioned as one of Apple's manufacturing partners through 2021. According to production, the top screen manufacturer in China is anticipated to surpass Apple as the primary supplier of displays for new iPhones by 2024, according to a prediction made last week by analyst Kuo Ming-chi at TF International Securities. The tech giant, however, intends to begin manufacturing its own smartphone displays by next year, according to a report published by Bloomberg on Tuesday, Jan. 10. According to the reports, Samsung, the largest smartphone manufacturer in the world and a customer of LG, currently manufactures half of its goods in Vietnam and is considering making new investments there.