Chinese display manufacturer BOE Technology Group Co Ltdwhich is the supplier Manzana inc and Samsung Electronics Co. Ltd. plans to invest a large amount of money in order to Build two new factories in VietnamTwo people reported this. The investment may reach up to 400 million dollars, – noted one of them.

The plan highlights efforts by technology companies led by US iPhone maker Apple and Taiwanese device assembler Foxconn. Reduce supply chain exposure amid trade with China and geopolitical tensions between Beijing and Washington and production disruptions caused by COVID-19 containment and containment measures in China.

BOE is in talks to lease tens of hectares of land in northern Vietnam to add to its relatively small factory in the south, which mainly supplies TV screens to Samsung and LG. South Korea’s Electronics Inc, said the same two people, who declined to be named because the talks were confidential, and the BOE also declined to comment.

In recent years, North Vietnam has received significant investment from electronics giants, becoming a major hub for the production of smartphones, computers and cameras, including products made by Apple and Samsung.

Hon Hai Precision Industry Co Ltd (Foxconn) ( 2317.TW ) and China’s Luxshare Precision Industry ( 002475.SZ ) also manufacture or plan to assemble a number of Apple products in the field, such as laptops and tablets.

BOE plans to lease up to 100 hectares of land And use 20% for a factory that makes remote control systems worth $150 million, one of the people said. Left over for fairs, the BOE will spend $250 million to build the plant on 50 acres, and vendors will use the remaining 30 acres. All this will happen by 2025.

The BOE is looking to build more sophisticated organic light emitting diode (OLED) displays on site instead of liquid crystal displays (LCDs), the person said. These are the screens it has been using since 2021 after BOE became one of the company’s manufacturing partners.

China’s largest display maker by production to become largest supplier of screens for new iPhones by 2024Analyst Kuo Ming-chi TF International Securities forecast last week. However, the American technology giant plans to start domestic production of mobile displays from next year, Bloomberg reported on Wednesday. Apple had no comment.

The BOE’s Vietnam plan is not specifically aimed at supplying Apple, however, the person said.

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