Vietnamese officials have asked Apple supplier Foxconn to voluntarily reduce power usage by 30% at its northern assembly plants to prevent power shortages like last summer, which led to over a billion dollars in lost output.
The energy-saving request is precautionary, Reuters reports. It was also sent to other manufacturers, aiming to avoid a repeat of last year’s outages. So far, production at Foxconn remains unaffected.
Vietnam, attracting companies diversifying from China amid U.S.-China trade tensions, saw Apple expanding its supplier base in the country. However, last year’s heatwave-induced power shortages caused $1.4 billion in losses, prompting Prime Minister Pham Minh Chinh to assure investors it wouldn’t happen again.
To meet peak electricity demand, coal-fired plant maintenance is being delayed. Details on the request to Foxconn, including its duration, remain unspecified.
Foxconn, or Hon Hai Precision Industry, operates several plants in northern Vietnam, including Bac Giang, where it assembles Apple products. Local power authorities have urged industrial parks to implement electricity-saving measures.
Nationwide, energy-saving measures and increased coal imports aim to prevent future shortages. Foreign chambers of commerce have called for reliable power, with South Korea’s KoCham noting delayed semiconductor investments due to supply uncertainties.
Apple is expected to produce 20% of iPad and Apple Watch models as well as 65% AirPods models in Vietnam by next year.
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