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Vietnam asks Foxconn, others, to reduce electricity use as power cuts loom

Vietnam at night

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A combination of expanding electricity demand and a fall in capacity means Vietnam is facing a power shortage, and wants iPhone maker Foxconn to limit its use.

Technology companies have been expanding in Vietnam, in part to move way from over dependence on China, and that expansion is increasing. Apple suppliers Foxconn, BOE, and Quanta, have each separately announced major new facilities in a region that now can't support them.

According to the Wall Street Journal, some of the facilities used by Foxconn, Luxshare, and Samsung, have received requests from electricity companies. Unspecified sources in local manufacturer told the publication that the firms are being asked to consider a schedule of rolling power cuts, or to cut down usage at peak times.

"Too many electronics manufacturers have expanded production in the area during the past year," said one of the sources, "and power consumption is simply skyrocketing."

Alongside the greatly increased demand, Vietnam is facing high temperatures that are causing drought, and reducing hydroelectric power generation.

Neither Apple nor Foxconn have commented, but the Wall Street Journal notes that the iPhone manufacturer has been able to keep its operations running. Foxconn is also said to be looking to build its own power generators in 2024.