Foxconn's ShunSin Technology to establish semiconductor subsidiary

December 27, 2023 | 17:05
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ShunSin Technology is planning to open a subsidiary in Vietnam costing $20 million.
Foxconn's ShunSin Technology to establish semiconductor subsidiary

ShunSin, a subsidiary of Foxconn, is a high-tech company engaging in the semiconductor industry and specialising in system-in-package modules. The new subsidiary, ShunSin Technology (Vietnam), is seen as a long-term equity investment by the company.

ShunSin has one plant in Hanoi and one in Bac Giang province. Both locations were built primarily to fulfill orders from US customers.

As reported by newswire Digitimes, ShunSin has also bolstered its deployment in the co-packaged optics (CPO) field. The company will produce its CPO products mainly at its plants in Vietnam. ShunSin has been looking into related technology for optical transceivers for years and has already generated samples of CPO, which might see widespread deployment by AI server supply chains by 2025.

According to MarketstandMarkets, the co-packaged optics market is projected to grow from $15 million in 2023 to $49 million by 2028, registering a compound annual growth rate of 26.5 per cent during the forecast period. The market growth is attributed to the penetration of the Internet of Things and connected devices in the education and healthcare sectors. Furthermore, rising deployment of the 5G network is expected to create lucrative opportunities for the market.

Global businesses such as Intel, Broadcom, and IBM have conducted extensive research into CPO technology, an interdisciplinary research field involving photonic devices, integrated circuit design, packaging, photonic device modelling, electronic-photonic co-simulation, applications, and standardisation.

The move is likely to boost the presence of Foxconn and its subsidiaries in Vietnam. Foxconn entered the Vietnamese market in 2007 and has invested $3.2 billion in the country. In June 2023, Foxconn received investment certificates for two new projects in Quang Ninh, with the total capital of $250 million.

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Quang Ninh People's Committee has granted investment certificates for two Foxconn projects worth more than $246 million in Song Khoai Industrial Zone (invested by Thailand’s biggest industrial developer Amata) and Quang Yen Economic Zone.

Foxconn earns $317 million in after-tax profit in Vietnam Foxconn earns $317 million in after-tax profit in Vietnam

The world's largest contract manufacturer and assembler of electronics, Hon Hai Precision Industry Co., Ltd., trading internationally as Foxconn, outperformed its industry rivals last year, reportedly earning VND7.5 trillion ($317 million) in after-tax profit from its 16 Vietnamese plants.

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Foreign-invested manufacturers and assemblers of electronics products have generated big profits from Vietnam, which is the foundation for their consecutive expansion in the country.

By Thanh Van

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