In a recent filing to the Shenzhen Stock Exchange, Goertek said it would invest up to about $280 million to establish a subsidiary in Vietnam to expand its business and ensure long-term operations there.
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| Goertek will invest up to about 280 million USD to open a subsidiary in Vietnam. |
Goertek's Vietnam entity will primarily manufacture consumer electronics products, from AirPods and smartwatches to virtual reality and augmented reality devices.
"The project takes advantage of utilizing local human resources in Vietnam to enhance the company's overall competitiveness," SCMP quoted a statement from Goertek.
Goertek is one of the major Chinese suppliers approached by tech giant Apple to produce its Vision Pro mixed reality glasses, scheduled for release in February in the US.
Goertek's subsidiary in Vietnam was established through the legal entity Goertek Hong Kong, possibly located in Bac Ninh province, one of the areas that attracts many Korean investors such as Samsung Electronics. Korean companies open factories producing electronics, semiconductors, smartphones and precision mechanical equipment here.
Goertek’s move comes as Apple begins to shift more production outside of China. Due to China’s Covid-19 restrictions, the “Apple” manufacturing supply chain has been disrupted and will affect sales in the 2022 holiday season. Since then, Apple has encouraged its partners to diversify their operations to other countries, including Vietnam.
According to research by investment bank TD Cowen, Apple suppliers – including Foxconn – have invested as much as $16 billion to reduce their reliance on China, moving factories to India, Vietnam, Mexico and the U.S. Last year, Foxconn announced plans to invest $1.6 billion to expand its presence in India.
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