Vietnamese officials have asked Apple supplier Foxconn to voluntarily reduce energy consumption by 30% at its northern assembly plants to prevent power outages such as How last summer it resulted in more than a billion dollars worth of lost product.
The request for energy conservation is precautionary in nature, Reuters reports. It was also sent to other manufacturers to avoid a repeat of last year's outages. So far, Foxconn's production has not been affected.
Vietnam, attracting companies diversifying their products from China amid U.S.-China trade tensions, has seen Apple expand its supplier base in the country. But last year's power shortage caused by a heatwave resulted in losses of $1.4 billion, prompting Prime Minister Pham Minh Trinh to reassure investors it would not happen again.
To meet peak power demand , it is necessary to carry out maintenance of coal-fired power plants. delayed. Details of the request to Foxconn, including its duration, remain unclear.
Foxconn, or Hon Hai Precision Industry, operates several factories in northern Vietnam, including Bac Giang, where Apple products are assembled. Local authorities have called on industrial parks to take measures to save electricity.
Across the country, energy conservation measures and increased coal imports are aimed at preventing future power shortages. Foreign chambers of commerce are calling for reliable energy supplies, and South Korea's KoCham is seeing a delay in semiconductor investment due to supply uncertainty.
Apple is expected to produce 20% of iPad and Apple Watch models, as well as 65% of models AirPods. in Vietnam by next year.
Learn more
- Apple's 2030 environmental goals: 95% of suppliers use clean energy
- Apple expands operations in Vietnam by diversifying into China
- AirPods and Vision Pro supplier moves production to Vietnam
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