Vietnam's 1st Lighthouse Factory, China Achieves 1st Sustainable Lighthouse Certification

11 October 2024, Taipei, Taiwan – The World Economic Forum (WEF) has recognized two more Hon Hai Technology Group (“Foxconn”) (TWSE:2317) facilities as Lighthouse factories. Subsidiary Foxconn Industrial Internet's Bac Giang Province facility becomes Vietnam's first Lighthouse factory, while the Guanlan factory in Shenzhen, China, is certified as Foxconn's first Sustainable Lighthouse. These additions bring the Group's total Lighthouse factories to eight*, underscoring the smart and sustainable leadership of the world’s largest electronics manufacturing service provider.

The Vietnam and China factories, recognized by the WEF, showcase the compatibility of efficient manufacturing and sustainability. Through AI and digitalization, these facilities boost production efficiency while reducing environmental impact. This model will be implemented across Foxconn's global base, advancing smart manufacturing and supporting industry-wide digital transformation.

Kiva Allgood, Head of the World Economic Forum's Centre for Advanced Manufacturing and Supply Chains, highlighted the significance of these developments: "These sites are integrating advanced technologies into their operations, not just to enhance productivity, but to create a sustainable and inclusive future for their workforce and the broader community."

AI and Vietnam's First National Smart Lighthouse Factory

The Vietnam factory, now the country's first national Lighthouse factory, provides valuable insights for multinational companies in global deployment. WEF's evaluation noted: “In its global expansion for supply chain resilience, Fii Vietnam overcame initial challenges such as heavy reliance on imported materials and [met] the opportunity to develop local talent. By implementing 40+ 4IR use cases, including advanced planning and AI-driven automation, the site improved labour productivity by 190%, achieved 99.5% on-time delivery and cut manufacturing costs by 45%..."

Vietnam's first WEF Lighthouse factory integrates AI, IoT, and big data for end-to-end management, boosting efficiency. Five key technologies enable a flexible production model, addressing cross-border challenges and meeting global demands for diverse, small-batch production.

Michael Wang, Vietnam factory's strategy development manager, emphasized that Lighthouse factories primarily enhance operational resilience. By building an interconnected system domestically and internationally, companies can quickly adapt to various setups, improve global supply chain management and production efficiency, and effectively address challenges in multinational operations.

AI and the First Sustainable Lighthouse Factory

WEF states: "To meet the consumer electronics industry's commitment to carbon neutrality, Foxconn Industrial Internet Shenzhen utilized AI, Internet of Things (IoT) and other 4IR technologies to optimize recycling, track carbon footprints and innovate for sustainability. This led to a 42% reduction in Scope 3 emissions, a 24% cut in Scope 1 and 2 emissions, and increased recycled material content to 55%-75%."

Wu Yanru, the sustainable Lighthouse project lead, emphasized that advanced technologies balance production quality with sustainability. For example, AI applications in anodizing ensure both operational efficiency and environmental management.

AI-driven innovation is now central to Foxconn's sustainability strategy. The Guanlan factory's advanced implementations, including IoT-supported carbon footprint optimization and AI-driven circular processes, have become valuable tools for improving quality, efficiency, and reducing emissions across various production lines.

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*Note: The "Lighthouse Factory" designation is conferred by the World Economic Forum (WEF) through a rigorous selection process based on multiple indicators. Selected factories represent the pinnacle of global smart manufacturing and digital operations. The Vietnam and Guanlan factories join Foxconn Technology Group's existing Lighthouse factories: Shenzhen Longhua (2019/01), Zhengzhou (2021/09), Wuhan (2019/09), Chengdu (2021/03), Shenzhen Guanlan (2023/01), and Taoyuan Nanqing Factory (2023/12).