Efforts to Lower Supply Chain Exposure to China
This move reflects efforts by technology firms like Apple and Foxconn to decrease supply chain exposure to China due to trade and geopolitical tensions between Beijing and Washington and production disruption caused by China's COVID-19 containment measures.
BOE to Rent Land in North Vietnam
BOE is in talks to rent dozens of hectares of land in north Vietnam to add to its relatively small plant in the south that supplies mostly television screens to South Korea's Samsung and LG Electronics. Northern Vietnam has attracted significant investment from electronics giants in recent years. It has become a major hub for producing smartphones, computers, and cameras, including flagship goods from Apple and Samsung.
BOE's Vietnam Factories to Produce OLED Screens
BOE plans to rent up to 100 hectares and use 20% for a plant making remote control systems at the cost of $150 million and the rest for displays, with BOE spending $250 million to build a plant on 50 hectares. BOE plans to produce more advanced organic light-emitting diodes (OLED) screens at the site rather than liquid-crystal displays (LCDs). Apple, which included BOE in its 2021 list of manufacturing partners, uses OLED screens for its latest iPhone smartphones.