Shulou(Shulou.com)11/24 Report--

Beijing, January 11 (Beijing)-display screen maker BOE Technology Group plans to invest heavily in building two factories in Vietnam, with a total investment of up to US $400 million (currently about 2.712 billion yuan), according to people familiar with the matter. BOE is a supplier to both Apple and Samsung Electronics.

Beijing Oriental is in talks to lease hundreds of hectares of land in northern Vietnam to expand its relatively small factory in southern Vietnam, according to people familiar with the matter. The factory mainly supplies TV screens to Samsung and LG Electronics in South Korea. Samsung, the world's largest smartphone maker, makes half of its phones in Vietnam, where LG also has a large business and plans to make new investments.

In recent years, northern Vietnam has attracted a lot of investment from electronics giants, becoming a major production center for smartphones, computers and cameras, including flagship products from Apple and Samsung. Apple contract manufacturers Hon Hai Precision and Lixun Precision also produce or plan to assemble Apple laptops, tablets and other products here.

JD.com plans to lease up to 100 hectares of land, 20 per cent of which will be used to build a factory to produce remote control systems, at a cost of $150 million, according to people familiar with the matter. The rest of the land will be used to build display factories. BOE will spend US $250 million to build a factory on 50 hectares of land, with the remaining 30 hectares for suppliers. All of this will be done by 2025.

BOE plans to produce more sophisticated OLED screens rather than LCD screens at the plant. Apple has added BOE to its list of manufacturing partners in 2021, and its latest iPhone smartphone uses an OLED screen. However, according to the latest report, Apple plans to use a self-designed microLED screen on the Apple Watch from 2024 and eventually expand it to the iPhone. People familiar with the matter said that BOE's Vietnam plant plans were not designed to supply screens for Apple.

BOE and Apple declined to comment.

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