Socialist Republic of Vietnam ‘encourages’ Apple supplier Foxconn to cut power use by 30%
The logo of electronics contract manufacturer Foxconn Technology Group, formally known as Hon Hai Precision Industry, is displayed at its headquarters in Taipei. Photo: Agence France-Presse
Officials of the Socialist Republic of Vietnam have called on Apple supplier Foxconn to voluntarily reduce power use by 30% at its assembly plants in the north of the country where there were electricity outages last year, Reuters reports citing “two people familiar with the matter.”
Francesco Guarascio and Ben Blanchard for Reuters:
The request for energy-saving measures, which two other industry sources said was sent to multiple manufacturers, is precautionary and aimed at averting a repeat of last summer when power shortage led to over a billion dollars in lost output.
The request to Foxconn was “an encouragement”, not a requirement and has not had any impact on production, one of the people said.
Vietnam is increasingly welcoming multinational companies, some spreading their risk from traditional manufacturing base China amid rising trade tension with the U.S. Last month, Apple promised further spending in the country where over the past year it has raised its number of suppliers to 35 from 25.
The people did not specify who sent the requests, when the request to Foxconn was sent or for how long the voluntary cut in electricity use would be needed. One person said the request was open-ended.
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MacDailyNews Take: Obviously, cutting power use by nearly a third for any meaningful length of time would negatively impact production in significant fashion.
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