William Gallagher
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.
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9 Comments
Apple could build a fuel cell installation similar to the one they have in North Carolina and sell the power back to Foxconn and others. It's only 10 MW, which is less than 1% of a nuclear power plant or hydro dam. but it should be more than enough for its vendors. Apple has enough cash on hand to build 10 nuclear plants but that would not be politically possible in Vietnam. Wind power is an option, but may be politically difficult as well. It would only take 4 turbines to come in around 10 MW. I do think this is Apple's problem to solve. They have to break their dependence on China, and they have to do it soon.
It’s a bit ironic, opponents to wind and solar often ask the question what to do when the wind stops or the sun sets; well, here is a sad case of what happens when it stops raining. Yet hydropower has so long seemed the reliable source of energy.