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June 17, 2022 02:56 AM
More Apple suppliers are keen on expanding their manufacturing operation in Vietnam as part of their relocation plan to mitigate supply chain headwinds.
Taiwanese contract manufacturer Pegatron is the latest Apple supplier to announce its plan to expand its manufacturing site in Vietnam.
The decision was made amid the recent strict COVID-19 protocols in China, which forces Pegatron to suspend operations in its plants. The company faces labour shortages, shrinking output, and slow deliveries.
“We faced COVID-19 controls in China for two months. We couldn’t have assessed that in advance, so that makes me emphasise our expansions in Vietnam, India, Indonesia, and North America, to solve our labour shortage, the gap between peak and low seasons, and increase the utilisation of our production capacity,” Reuters quoted President Liao Syh-jang as he told an annual shareholder meeting in Taipei.
The third project worth $500 million is slated for the 2026-2027 period. Pegatron also plans to relocate its research and development centre from China to Vietnam.