The Goertek Co., Limited, a wholly-owned subsidiary of Chinese electronics giant Goertek, plans to set up a subsidiary in the northern province of Bac Ninh with investment of $280 million, according to a filing with the Shenzhen Stock Exchange on January 15.

The subsidiary is set to be located in Lot A1 at the Nam Son-Hap Linh Industrial Park and specialize in manufacturing consumer electronics products, including AirPods, smartwatches, and, tentatively, virtual reality (VR) and augmented reality (AR) devices. An operational date for the new business is yet to be announced.

This investment is based on Goertek’s future development plans and customer needs, and will serve the Chinese assembler’s business expansion and long-term operations in the country.

“The project will make full use of local resources in Vietnam to enhance the company’s overall competitiveness and achieve its long-term development goals,” Goertek noted.

Goertek is among China’s major suppliers and a key supplier of Apple.

In February 2023, it signed a deal to lease 62.7 ha at the 306-ha Nam Son-Hap Linh Industrial Park, operated by the Kinh Bac City Development Holding Corp.

In October 2022, the International Finance Corporation (IFC) approved a $700 million financing package for Goertek to build a modern electronics production plant in Vietnam.

In October 2023, Goertek said it plans to triple or quadruple its investments in Bac Ninh over the next five to ten years. It has made three investments in the province with total registered capital of $905 million, with one conducted by its subsidiary Goertek Vina and two by its subsidiary Goertek Technology Vina Company Limited.

Meanwhile, Apple suppliers have spent around $16 billion on diversifying production assets away from China to India, Mexico, the US, and Vietnam since 2018, according to research by TD Cowen.

Apple supplier Luxshare-ICT is pouring an additional $330 million into its electronic component manufacturing project in the northern province of Bac Giang, next to Bac Ninh. In June 2023, Foxconn received investment licenses for two new projects in northern Quang Ninh province, with total capital of $250 million.