Foxconn, Apple’s primary assembly partner in Asia, announced a major new factory forthcoming in Vietnam on Tuesday, in what analysts interpret as a sign the iPhone manufacturer is shifting its production out of China, to other nations.

Foxconn has already signed the lease for $62.5 million, on 45 hectares of land in Bac Giang province, Vietnam. The company noted the factory should meet “operational needs and expand production capacity,” as it employs 30,000 workers, and represents a $300 million investment in the region.

The new plant will reportedly be used by the tech giant to assemble MacBooks. The Bac Giang industrial park in Vietnam is a hub for big tech factories. Apple and Samsung component suppliers and assemblers already are housed there, and Foxconn already has facilities producing AirPods, Apple Watches, and iPads.

Apple had first begun to alter its production plans and move its manufacturing out of China, towards emerging markets such as India and Vietnam in the wake of major disruptions in production at its Foxconn facility  in Zhengzhou. There, hundreds of workers engaged in violent protests and riots in response to Chinese Covid-19 restrictions imposed on them following the detection of an outbreak of the virus at the facility. The protests shut down the factory and put a halt to production as authorities sent riot police in, and workers fled the factory.

Earlier in February, Tim Cook, the CEO of Apple, said the challenges at the time “significantly impacted” iPhone supplies, causing major supply disruptions just as the company headed into the critical Christmas sales period.

That was largely responsible for the company posting the biggest quarterly decline in more than five years, as well as the first decline in sales year over year since 2019. On an annual basis iPhone revenues fell from $71.6 billion to $65.8 billion.