Foxconn, the Taipei-based supplier for Apple, will invest approximately$551 million in two projects in the northern province of Quang Ninh, Vietnam. The company received a$264 million project license at Song Khoai Amata Industrial Park to produce 4.2 million smart entertainment units annually. It will also invest$287 million in Bac Tien Phong Industrial Park for smart-system equipment production.

According to the announcement, the company has committed nearly$1 billion in investments in the province. To support Foxconn, the Quang Ninh provincial government will establish a working group to expedite Foxconn's construction, aiming for completion by September 2025. Last year, the government announced two additional Foxconn plants for electronic components with a total investment of$246 million.

Why does it matter?

Through its main subsidiary, Hon Hai Precision Industry, which assembles most of the world's iPhones, Foxconn has been expanding its production facilities to countries like India and Vietnam. That move can be located as a part of the larger trend of tech companies diversifying their supply chain in an attempt to reduce their reliance on China.