1. Vietnam is looking to build its first semiconductor plant
despite US warnings that it will involve high costs.
2. Reuters reported that officials have met with half a
dozen US chip firms in the past few weeks, including with Vu Tu Thanh, head of
the Vietnam office of the US-ASEAN Business Council.
3. According to one executive consulted by Reuters, the
government in Hanoi is looking to build a plant for less advanced chips used in
cars or telecom applications.
4. The Vietnamese government has said it wants to build its
first plant by the end of this decade and
chip companies would benefit from “the highest incentives available in
Vietnam”.
5. The move to attract chipmaking investors comes after a surge in FDI inflows in the country. According to national statistics, Vietnam attracted over $15.29bn in FDI between January and October 2023, marking a 54% year-on-year increase in the value of investments. Around $5.29bn was spent on 1,051 existing projects.
6. Vietnam has pulled in significant interest from investors
who are looking to diversify their supply chains away from China. As a result,
a growing number of investment projects have been announced in the Southeast
Asian country, including a promise from Taiwan-based electronics contract
manufacturer Foxconn to invest $200m to build a new plant in Vietnam’s Quang
Ninh province.
7. According to GlobalData, in 2022, Vietnam, Malaysia and
the Philippines witnessed strong foreign direct investment (FDI) growth as
Western companies’ interest in China subsided.
8. Because of that, the three countries saw a combined 61.3%
year-on-year increase in FDI levels in 2022, with the number of FDI projects
almost doubling in that year compared to 2021.
First ICB plant in
northern Vietnam inaugurated
1. The new project, located in Van Trung Industrial Park, is
the second Bac Giang-based factory of Hana Micron Vina, which manufactures
integrated circuit boards used for mobile phones and other smart electronic
products. The first factory came into operation in 2022.
2. With the second factory, Hana Micron Vina's total
investment in Bac Giang has reached nearly $600 million.
3. Choi Chang Ho, chairman of the company, said Hana Micron
Vina plans to increase its total investment to over $1 billion in 2025,
generating annual revenues of $800 million and creating 4,000 jobs for
Vietnamese workers.
4. Hana Micron Vina will be the number one production
facility in Hana Micron Group's global business operations, and personnel in
Vietnam will account for 70% of its total workforce, he said, adding the
company's revenue is expected to reach $300 million this year.
5. The firm will develop a new semiconductor industry
ecosystem in Vietnam, contributing to diversifying the types of innovative
technology and techniques that the country is pursuing, he noted.
6. In addition to Intel with a $1.5 billion plant in Ho Chi
Minh City, Amkor Group has built a $1.6 billion project in Bac Ninh province,
of which phase 1 is worth $500 million. The giant is preparing to open the
factory at the end of this year, with trial operations set to start in October
after construction is completed in September.
7. China's Victory Gain Technology Group also wants to
invest in a $400 million semiconductor components project in Bac Ninh, a
neighbor of Bac Giang. Meanwhile, Runergy New Energy Science and Technology
Group has invested $440 million in the central province of Nghe An to produce
semiconductor components, including silicon bars and semiconductor wafers.
8. With 345 projects, South Korea now ranks first in the
number of projects and second in total registered investment capital in Bac
Giang province. Korean enterprises create about 25% of the total industrial
production value of the FDI sector in the province, which is home to more than
1,200 Korean experts and workers, local official data shows.
Source:
https://www.investmentmonitor.ai/news/vietnam-looks-to-build-semiconductor-plant-us-warning/?cf-view
https://theinvestor.vn/first-semiconductor-plant-in-northern-vietnam-inaugurated-d6653.html
