The world’s largest contract electronics maker and assembler, Foxconn (2354. TW), has received approval from Vietnam to invest $246 million in two new projects in its northern province of Quang Ninh. The projects, by its unit Foxconn Singapore, will raise total investments by Foxconn in Vietnam to about $3 billion and will center on the manufacture and assembly of telecom and electric vehicle (EV) parts, the provincial government said.

Of the new investment, $200 million will go into a factory to produce EV chargers and components scheduled to start production in January 2025 with a workforce of 1,200 people. The rest will be used to increase capacity at a factory that makes electronic components for Apple products, including iPhones and iPads.

The new investments will boost Foxconn’s production capacity in Vietnam to about 8 million devices a year, compared with around 6 million now. The company plans to ramp up production to 12 million units a year by the end of this decade, putting it on par with China. The expansion is part of a broader effort by the Taiwan-based firm to shift more production away from China as it seeks to reduce its exposure to rising labor costs in China.

Foxconn is also building a research institute in Quang Ninh to develop next-generation technologies such as artificial intelligence and semiconductors, which are critical to its transformation from “brawn” to “brains.” In October last year, Foxconn CEO Gou outlined the company’s ambitious strategy of shifting manufacturing to lower-cost countries to become a global tech giant.

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Earlier this month, the company shocked investors by reporting its first quarterly revenue decline in nearly four years. The slump was attributed to significant disruption at its plant in Zhengzhou, China, which suffered from a mass exodus of employees and worker protests amid stringent pandemic controls.

In addition to expanding in Vietnam, Foxconn is looking at other locations to diversify its supply chain outside China. Last month, the company announced it was investing $500 million in India to produce advanced semiconductors as it continues its push to move some of its production out of China.

The company is reportedly in talks with the Vietnamese electric car startup VinFast to make batteries and other EV components for its future electric vehicles. The deal would be a significant win for the country, as it is seeking to build up its car manufacturing industry.

Despite the challenges, Foxconn is optimistic about its long-term business prospects in Vietnam. During a visit to the country in June, the firm’s executive chairman told local media that it would continue to work with governments and stakeholders in Vietnam to improve the environment for foreign businesses. Karan also said the company would soon begin working with local officials to develop specific projects in the country, including a port project in Danang.