Exclusive-Apple supplier BOE plans new factories in Vietnam -sources - Yahoo Finance

By Francesco Guarascio

HANOI (Reuters) - Chinese show shaper BOE Technology Group Co Ltd, a supplier of some Apple Inc and Samsung Electronics Co Ltd, plans to put a important sum to physique 2 factories successful Vietnam, 2 radical acquainted with the substance said.

The concern whitethorn full up to $400 million, 1 of them said.

The program underscores efforts by exertion firms led by U.S. iPhone shaper Apple and Taiwanese instrumentality assembler Foxconn to little proviso concatenation vulnerability to China amid commercialized and geopolitical hostility betwixt Beijing and Washington and accumulation disruption caused by China's COVID-19 containment measures.

BOE is successful talks to rent dozens of hectares of onshore successful northbound Vietnam to adhd to its comparatively tiny works successful the southbound that supplies mostly tv screens to South Korea's Samsung and LG Electronics Inc, the radical said, declining to beryllium identified arsenic negotiations were confidential.

BOE declined to comment.

Northern Vietnam has successful caller years attracted important concern from electronics giants, becoming a large hub for the accumulation of smartphones, computers and cameras, including flagship goods from Apple and Samsung.

Hon Hai Precision Industry Co Ltd (Foxconn) and China's Luxshare Precision Industry besides marque oregon program to assemble a fig of Apple products successful the country specified arsenic laptop and tablet computers.

BOE plans to rent up to 100 hectares and usage 20% for a works making distant power systems astatine a outgo of $150 million, 1 of the radical said.

The remainder would beryllium for displays, with BOE spending $250 cardinal to physique a works connected 50 hectares portion suppliers would usage the remaining 30 hectares, each by 2025, the idiosyncratic said.

BOE plans to marque the much blase integrated light-emitting diodes (OLED) screens astatine the tract alternatively than liquid-crystal displays (LCDs), the idiosyncratic said.

Apple, which included BOE successful its 2021 database of manufacturing partners, uses OLED screens for its latest iPhone smartphones.

China's biggest show shaper by output is acceptable to go the largest supplier of displays for caller iPhones by 2024, expert Kuo Ming-chi astatine TF International Securities forecast past week.

The U.S. tech giant, however, plans to commencement making mobile screens in-house by adjacent year, Bloomberg reported connected Wednesday.

Apple declined to comment.

BOE's Vietnam program is not specifically aimed astatine supplying Apple, the idiosyncratic said.

Customer Samsung, the world's largest smartphone maker, produces fractional of its handsets successful Vietnam portion LG has a ample cognition successful the state and is readying caller investment.

(Reporting by Francesco Guarascio; Additional reporting by Josh Horwitz and Phuong Nguyen; Editing by Christopher Cushing)