PCB producers ramp up investment

Taiwan Printed Circuit Board Techvest (TPT), which is one of the leading suppliers of consumer electronics product in the world, is completing procedures for the construction of a printed circuit board (PCB) factory in Thanh Liem Industrial Zone (IZ) in northern Ha Nam province after receiving a registration certificate from the provincial authority in November. PCBs are the base component of many electronic items like motherboards and graphics cards.

PCB producers ramp up investment, illustration photo/ Le Toan

Nguyen Thi Hong Chuyen, deputy general director of Capella Land JSC, the investor of Thanh Liem IZ, told VIR that TPT’s project will cover an area of about 84,000 sq.m and have total investment of $30 million. The company eventually plans to increase capital to $60 million. Construction is expected to start in the first quarter of 2023.

“Via working sessions with foreign partners and business trips aboard, I see that many manufacturers have intentions to invest in Vietnam for the expansion of large partners such as Foxconn, Luxshare, and Wistron,” said Chuyen.

“The priority criteria for their investment is the complete transport infrastructure, potential of labour force as well as the professional and open investment environment. They want to locate their facilities near global suppliers for convenience in the delivery of goods. After negotiating, TPT has decided to invest in Thanh Liem IZ of Ha Nam because the province is a hub for both Wistron and Qisda.”

Long-term, second phase construction is aimed to start before the end of 2025 to start official operation in mid-2026. The factory will manufacture at a capacity of over 800,000 products per year. TPT’s partners are currently LG, Foxconn, Samsung, Compal, Wistron, and Qisda.

In May, Qisda CEO Peter Chen said that the group would accelerate plans to expand production capacity in Vietnam, adding that the purpose of the move was to reduce dependence on the production market. The group developed a $400-million factory in Hanoi in just six months, and Qisda took nearly 20 satellite firms to the province to manufacture products to export to the EU and the United States. Accordingly, it will shift one-third of its capacity from China to Vietnam over the next 2-3 years.

Along with Qisda, other tech groups such as Luxshare ITC and Foxconn are eager to expand their operation in Vietnam, with projects worth hundreds of millions of dollars.

Vietnam is also on the shortlist of many Taiwanese-based PCB suppliers considering relocating manufacturing to Southeast Asia, according to newswire Digitimes. Other Taiwan-based companies accelerating relocation projects include Taiflex Scientific, Elite Materials, Iteq, Flexium Interconnect, and Chin Poon Industrial.

A JPMorgan analysis forecasts that the current figure of 95 per cent of Apple products made in China will drop to about 75 per cent by 2025. Instead, the tech giant plans to move its production chain to Vietnam and India. JPMorgan estimates that Apple will relocate 20 per cent of iPad, 5 per cent of MacBook, 20 per cent of Apple Watch, and 65 per cent of AirPod production to Vietnam by the middle of the century.

Meanwhile, Vector Fabrication Inc. from the United States is preparing to start construction of a $60 million factory for micro-electro-mechanical systems and PCBs in Danang Hi-Tech Park. Covering 40,000 sq.m, the factory’s first phase will come into operation in early 2025.

Vector has more than 15 years of experience in PCB manufacturing for consumer electronics, medical, telecommunications, automotive, and aerospace industries. It also currently operates a factory in the southern province of Binh Duong, which provide products for Apple, Logitech, Maxim Integrated, and others.

Foxconn plans to pour additional $300 million into a new factory in Vietnam Taiwan-based Hon Hai Precision Industry, better known as Foxconn, plans to lease 50.5 hectares of land in Quang Chau Industrial Park in the northern province of Bac Giang to develop a new project with an investment of $300 million.

Luxshare to boost employee numbers to begin iPhone manufacturing in Vietnam Luxshare factories were found somewhat lacking in human resources capacity by Apple to begin iPhone manufacturing in Vietnam.

Luxshare ICT invests additional $150 million in Nghe An The central province of Nghe An on October 28 agreed on the investment planning for two foreign-invested projects worth $275 million, including one by Luxshare ICT.