ShinFox Energy (6806) is expanding internationally by signing an Investment Agreement with Chugoku Electric Power of Japan and Vietnam’s renewable energy developer, BB Power Holdings (BBPH). They will jointly invest in a renewable energy power plant in Vietnam, with an initial capacity exceeding 200 MW. This move reflects their strong commitment to participating in the international green energy development landscape and providing essential support as the ideal backing for global overseas green energy supply by Taiwanese businesses.

In addition, ShinFox Energy established Shinfox Far East Company Pte Ltd in Singapore two years ago to create an international fleet and maritime engineering team. Due to Taiwan’s limitation from the influence of the northeast monsoon, the offshore wind power construction period is only six months. To engage in maritime engineering, it is essential to internationalize. In order to expand the scale of Taiwan’s offshore wind power market and be able to undertake huge global maritime engineering opportunities worth billions of dollars, Sowitec Energy jointly established ‘Shinfox Far East Company Pte Ltd’ in 2021 in partnership with a maritime engineering team from Singapore.

After completing the investment this year, ShinFox Energy gained control and allocated billions to build an international fleet. In addition to nurturing talented young people from Taiwan, the company has organized a team consisting of professionals from Singapore, Germany, the Netherlands, Denmark, India, Malaysia, Vietnam, Myanmar, and other countries. It is the first owner of an international maritime engineering team and international fleet among local offshore wind power teams in Taiwan. This marks an important step for Taiwan’s local wind power industry to move towards an international professional team.

Husen Hu, General Manager of ShinFox Energy, pointed out that renewable energy is a service industry, and the service industry needs to go international. In order to develop overseas renewable energy business, ShinFox Energy joined forces with international strategic partners to invest in overseas clean energy projects. Last year, they also went to the Pacific region to develop the Fiji wind power renewable energy market in collaboration with Chugoku Electric Power from Japan, thereby tapping into global renewable energy opportunities.

Recently, on the morning of the Mid-Autumn Festival, they participated in an investment agreement with the well-known developer BBPH in Vietnam through a joint investment approach. ShinFox Energy holds 35% of the shares, Chugoku Electric Power from Japan holds 35%, and the Vietnamese developer holds 30%. The three parties confirmed their cooperation framework in Ho Chi Minh City, Vietnam, on September 29. BBPH is a subsidiary of the Vietnamese BB Group and has accumulated nearly 1 GW of operational and management experience, covering various green energy technologies such as hydropower, solar power, and wind power.

Vietnam is currently one of the Asian countries with the most comprehensive global trade agreements, including CPTPP, EVFTA, RCEP, and enjoys preferential tariffs with major global countries. This has led to increased investment by Taiwan’s manufacturing industry in Vietnam in recent years. Taiwan currently ranks as the fourth largest investor in Vietnam, following South Korea, Singapore, and Japan.”

In 2022, the Vietnamese government introduced the ‘2050 National Climate Change Strategy,’ pledging to achieve carbon neutrality by 2050. This year, they have also approved the ‘8th National Power Development Strategy,’ which prioritizes the green energy industry as a key focus for the next stage of Vietnam’s development. Moreover, the visit of U.S. President Biden to Vietnam on September 10th marked an elevation in bilateral relations to a ‘Comprehensive Strategic Partnership,’ strengthening economic and trade cooperation. As a result, Vietnam’s green energy industry has garnered significant attention, and the demand for green electricity has become an urgent and crucial issue for Taiwanese businesses.

To meet the demand for green electricity in Vietnam, ShinFox Energy’s board of directors recently approved additional investments in Vietnamese renewable energy projects. They are collaborating with strategic partners, Chugoku Electric Power of Japan and Vietnamese developer BB Power Holdings (BBPH), to jointly invest in overseas clean energy projects, expanding their international presence. This move aims to generate higher returns on investments, benefiting shareholders and contributing to the company’s revenue.

According to official estimates, Vietnam’s solar energy potential is approximately 963 GW (around 837,400 MW on land, 77,400 MW on water surfaces, and 48,200 MW on rooftops). From now until 2030, the total solar energy capacity is expected to increase by 4,100 MW. By 2050, the total installed capacity is projected to range from 168,594 to 189,294 MW, producing 25.21 to 29.15 billion kWh of electricity.

By 2030, onshore wind energy capacity is set to reach 21,880 MW, with around 6,000 MW of offshore wind energy. Given the rapid technological advancements, reasonable electricity prices, and transmission costs, these figures may further expand. By 2050, offshore wind energy could potentially reach between 70,000 and 91,500 MW.”

Source: Yahoo 新聞 | Link

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From Hanoi, the capital of Vietnam, heading south, in less than an hour’s drive, the tall buildings outside the car window quickly give way to industrial factories.

This is Hai Duong Province, the electronic manufacturing hub of northern Vietnam. In the industrial zones attracting foreign investment, the roads are straight and wide. On one side, you have the network equipment factory Wistron NeWEB, while on the other side, Wistron is planning to expand its operations. Not far away, a newly started Japanese electronics factory is under construction. Cattle graze leisurely in the scorching sun on endless construction sites.

In Dong Van Industrial Zone, Henan Province, Vietnam, major factories are expanding against the economic boom.

“Passionate, healthy, and ready for overtime!” Lin Xuanjie, Chairman of Great Resource Group and President of the Bac Nunh Branch of the Vietnam Taiwanese Business Association, stopped his car and casually translated the recruitment signboard next to him. Factories are settling in one after another, and every street corner is filled with job advertisements.

Lin Xuanjie, who is engaged in factory construction, has been in Vietnam for 17 years. He never expected that the industrial zones in northern Vietnam would be as crowded as they are now, and land prices have doubled along with it.

Because the factories that were stuck due to the pandemic have all started operating this year,” observed Chien Chih-ming, Chairman of the Vietnam Taiwanese Business Association. Just among the Taiwanese business members in northern Vietnam, there has been an increase of 150 new companies in the last two years.

Hai Duong Province is just a microcosm of this recent explosion in foreign investment. Looking at the map of major factory locations, it’s evident that this wave is different from what we saw four years ago.

Initially, major electronic factories that set up in China followed the route that Foxconn founder Terry Gou had chosen 20 years ago. They took China’s production capacity and distributed it through land routes from Guangxi to Hanoi, the airport hub, and the seaport of Hai Phong in northern Vietnam.

But now, the areas around Hanoi and Hai Phong are no longer sufficient. Electronic manufacturing giants are sprouting up all over northern Vietnam. Even the agricultural province of Ninh Thuan in southern Vietnam announced this year that it is opening up land for development, welcoming Foxconn’s $1.2 billion investment with open arms.

This investment boom we see now is almost going against the economic trend.

Looking at Ho Chi Minh City, tall buildings are rising from the ground.

China Plus One hotspots: Customers are specifically requesting factory setups

Currently, with sluggish consumer demand in Europe and the United States and the manufacturing industry still working to reduce its inventory, Vietnamese officials have acknowledged that this year’s GDP growth target of 6.5% may be difficult to achieve. Paradoxically, investments continue to pour in.

“The customers have already directly told us to prepare a factory in Vietnam. Can we afford not to come?” lamented the head of a major electronics contract manufacturing company in Vietnam.

Northern Vietnam has become the hottest new region for the “China Plus One” strategy. The reason is its proximity to China, allowing for integration with Chinese factories and the gradual development of industrial specialization.

“Other than China, where in the world can you find all the Electronic Five Brothers gathered like in Taiwan?” accurately described Liao Yun-huan, the Deputy General Manager of Chisilin Vietnam, a major passive component manufacturer.

In Northern Vietnam, it’s not only Taiwanese businesses that are thriving. Chinese Apple supply chain giant Luxshare Precision plans to expand its Vietnamese factory this year, while Vietnam’s largest foreign direct investor, Samsung, has announced further investment, with plans to spend $220 million in Hanoi to establish a new research and development center.

Vietnamese authorities estimate that this year’s foreign direct investment (FDI) scale will return to pre-pandemic highs, ranking just behind Singapore and Indonesia within the ASEAN region.

“The entire world is now linked to Vietnam,” said Schneider, the Deputy Chair of the Legal Committee of the European Business Association in Vietnam. Vietnam already had numerous free trade agreements in hand, and now it has even more opportunities to substitute for China as the world’s factory.

Vietnamese people take pride in being the only nation to have defeated both major powers, the United States and China. Whether you visit the Military History Museum in Hanoi or the War Remnants Museum in Ho Chi Minh City, they document the glorious history of how the Viet Cong guerrillas during the Vietnam War turned the tide against the once-mighty United States, causing them to leave with their heads hung low.

In the heart of Ho Chi Minh City, a three-story statue of the historical figure Chen Xingdao stands tall. In 2019, during a territorial dispute with China in the South China Sea, the Vietnamese people gathered at the statue to light incense and pay their respects as a symbol of resistance against China.

However, unlike the past, this time, the conflict between major powers did not plunge Vietnam into civil war; instead, it led Vietnam, which navigates between the United States and China, to mark a significant coming of age.

The statue on Ho Chi Minh Book Street says that Hoang Sa and Truong Sa belong to Vietnam.

Refusing to wash away its place of origin! Biden sends semiconductors

In September, U.S. President Biden, along with high-tech companies, visited Hanoi. Bilateral relations elevated two notches, with the U.S. establishing a ‘Comprehensive Strategic Partnership’ with Vietnam. Simultaneously, U.S. packaging giant Amkor announced a $1.6 billion investment in building a semiconductor packaging plant in North Ning Province near Hanoi.

Barely three weeks after Biden’s departure, Reuters exclusively revealed that Chinese President Xi Jinping might visit Vietnam at the end of October or early November.

Chen Ruiqi, a seasoned diplomat who has served over six years as Taiwan’s Economic and Cultural Representative to Vietnam, commented on the situation. He analyzed that due to supply chain restructuring and Vietnam’s strategic location in the South China Sea, both China and the U.S. cannot afford to ignore Vietnam.

“We want semiconductors, we want high technology, we want to develop renewable energy, digital economy, and establish an international financial center,” said Du Yihuang, Director of the Foreign Investment Agency under Vietnam’s Ministry of Planning and Investment, in a recent investment briefing, laying out the straightforward investment goals.”

As Vietnam’s exports continue to grow, Haiphong Port, North Vietnam’s largest port, has had to expand the construction of deep-water terminals. The picture shows Evergreen Marine’s joint venture terminal in Haiphong.

In the past, the main focus of economic and trade policies was signing free trade agreements to facilitate foreign investment for export. However, there has been a recent shift in the emphasis highlighted by Vietnamese officials.

While Vietnam still relies on importing raw materials and intermediate goods from China, in recent years, it has drawn the attention of the United States. The U.S. has raised concerns that Chinese companies are exploiting Vietnam as a “place of origin.” To counter this mispractice, Chen Yiqian, a practicing accountant from PwC stationed in Vietnam, observed that Vietnam has been strengthening customs oversight lately, stating that “this is to prevent the erosion of the tax base.

A general manager of one of the Electronic Five Brothers also revealed that Vietnamese officials are becoming increasingly concerned about whether foreign investment is genuinely helping Vietnam upgrade its technology. He explained, “In the past, when we set up factories in mainland China, local officials would ask what assistance we needed. But it’s different in Vietnam; officials now ask, ‘How many local employees have you hired? How much tax have you paid?'” Comparing the attitudes of officials in both places towards foreign investment, the difference is clear.

While officials aim to enhance the value of “Made in Vietnam” to benefit the local economy, they are also pushing for the upgrade of domestic businesses’ manufacturing capabilities.

The young entrepreneurs are ambitious about building a national brand.

VinFast, the first Vietnamese electric car brand to go public in the United States, may appear to be a grand vision of the Vin Group, Vietnam’s largest conglomerate. It has brought together partners from various countries to build Vietnamese electric vehicles from scratch. However, beneath the surface, Vin Group aims to nurture the most comprehensive domestic electric vehicle manufacturing supply chain through the flagship electric car project.

“Vietnam is not poor, and Vietnam is also not at war!” exclaimed Ruan Wenqing, former Senior Vice President of VinFast and current General Manager of Vin Group’s Green Smart Mobility (GSM) division in a powerful statement during an interview with “CommonWealth Magazine”.

At under 30 years old, he is one of the youngest high-level executives at Vin Group. When asked why he joined the company, his answer revealed a grand ambition: “To enhance the national brand of Vietnam.”

Ruan Wenqing is not an exception. Whether it’s interviewing the electric motorcycle startup Selex Motors or actively participating in the Ho Chi Minh City Startup Week, creating a national manufacturing brand for Vietnam is the overarching dream of the majority of young entrepreneurs.

However, to achieve this manufacturing upgrade, Vietnam faces two clear obstacles.

Obstacle 1: Persistent corruption and inadequate infrastructure

First and foremost, corruption and inadequate infrastructure are the major stumbling blocks in Vietnam today.

Vietnamese often say, “While China is crossing the river by feeling the stones, Vietnam is crossing the river by feeling China.” Both are socialist countries, and Vietnam actively looks to China for inspiration, presenting an economic development plan every five years, just like its neighbor.

However, since China’s economic reforms, local officials’ performance and economic development have become closely intertwined, while in Vietnam, local officials are still mired in corruption and inefficiency.

Vietnam’s infrastructure development is slow. It took more than ten years to build a single line of Hanoi’s light rail. In the end, only 13 kilometers were completed, and residents regarded it as a holiday tourist facility.

Even today, when driving on Vietnam’s expressways, there are police officers in uniforms at the toll booths, parked in groups by the roadside, checking license plates and stopping vehicles at any time to collect what’s colloquially known as “coffee money,” a form of bribe.

“If we take into account the underground economy, Vietnam’s economic size would have ranked in the top three in Southeast Asia a long time ago,” quipped Kevin, a 26-year-old entrepreneur from Hanoi.

The lack of administrative efficiency is most notably reflected in the lagging infrastructure.

Throughout Vietnam, you can see infrastructure projects that have been under construction for over a decade without completion.

Due to the influx of numerous businesses, Vietnam, which heavily relies on hydroelectric power, faced challenges due to climate change and an outdated power grid. In May of this year, Northern Vietnam experienced an unexpected power outage, affecting factory production capacity.

“We, a few Taiwanese electronics companies, even set up a Line group to discuss this issue daily,” said one major manufacturer, expressing frustration.

Obstacle 2: Uneven distribution of the labor force

While infrastructure has been a headache, Vietnam’s young labor force, once considered an advantage in manufacturing, has now become a pain point for businesses.

Ho Chi Minh is full of youth and vitality.

At the end of August, when “CommonWealth Magazine” conducted interviews in Northern and Southern Vietnam, foreign investors, scholars, and even officials were all discussing the labor shortage in Vietnam.

Looking at the population distribution in Vietnam, about 60% of the population is concentrated in the South. However, the influx of businesses into Vietnam is primarily concentrated in the northern regions, creating an evident supply-demand imbalance.

There’s a belief among businesses that it’s challenging to hire employees from different provinces in Vietnam because Vietnamese people are “homesick.” However, this issue likely stems from a lack of understanding of Vietnamese culture.

“Foreigners might find it challenging to understand, but regionalism is prevalent in Vietnam. People are hesitant to move between provinces or from North to South. They would rather go abroad for work,” explained Professor Nguyen Thanh Chung from Fulbright University Vietnam.

Furthermore, foreign investors are eyeing high-tech talent in Vietnam. Setting aside the fact that Vietnam’s international rankings in higher education still lag behind, data from the Ministry of Education, as provided by Counselor Chen Hexian from the Ministry of Education in Ho Chi Minh City, indicates that Vietnam produces just over 90,000 STEM graduates annually. Both foreign technology companies and domestic software companies in Vietnam are competing for the same pool of talent.

“Vietnam is dreaming big, but without the economic foundation that China had for its development, it’s unlikely to become the next China,” commented a Korean businessman who has been deeply involved in Vietnam for over 20 years.

The current chaos in development is quite similar to driving in Vietnam. When you arrive in Vietnam, the first thing you’re told is that if you’re not bold enough, or if you follow the rules too strictly, you won’t be able to cross the road.

“Everyone moves slowly, looks left and right, front and back, and then proceeds,” described Wang Kunsheng, a Taiwanese businessman who has been involved in toy manufacturing and business in Vietnam for over 20 years.

However, progressing based on mutual understanding cannot be the long-term strategy for a nation. In the midst of U.S.-China competition, can Vietnam seize the historical opportunity? Their biggest enemy isn’t someone else; it’s themselves.

Source：天下雜誌 ｜連結

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The CBRE Vietnam report forecasts that in the next 2 years, industrial land rental prices are expected to increase by 6-10% annually in both the Northern and Southern regions.

The CBRE Vietnam report forecasts that in the next 2 years, industrial land rental prices are expected to increase by 6-10% annually in both the Northern and Southern regions.

Positive demand from various industries and nationalities is driving rental price growth in many areas. Meanwhile, the rental prices for ready-built warehouses are expected to increase slightly by 2%-4% annually over the next two years.

In the first 9 months of this year, tenants from China, Vietnam, Japan, the United States, and the European Union have been actively seeking industrial land and warehouses in the Vietnamese market. These tenants account for approximately 70-80% of the total inquiries received by CBRE in both the Northern and Southern regions.

With Vietnam strengthening its comprehensive cooperation with strategic partners such as the United States, South Korea, and China in recent times, tenants from these countries are expected to continue leading the demand in the Vietnamese industrial real estate market.

Pham Ngoc Thien Thanh, Head of Research and Consultancy at CBRE Vietnam, shared that the absorption area of the entire market this year is expected to be higher than the previous year, indicating the recovery of demand. CBRE has observed particularly positive activity in the industrial land and warehouse segments, with diverse demand sources. The main demand for ready-built warehouses comes from various sectors such as textiles, pharmaceuticals, and electronics.

CBRE representatives also believe that warehouse rental demand has shown an impressive recovery compared to the previous quarter, with large transactions coming from logistics companies. Looking to the future, sustainable development and high technology trends continue to attract the attention of investors and businesses. Green criteria are gradually becoming one of the important criteria for the development of factories and warehouses, driving the development of green industrial parks in the future.

CBRE’s data reveals that in the third quarter, in the Southern industrial market, the average occupancy rate in medium-sized industrial parks reached 81.9%. The absorption rate of industrial land exceeded 190 hectares, increasing by 6% compared to the previous quarter. In the first 9 months, it reached over 770 hectares, which is 20% higher than the entire year of 2022.

Regarding rental prices, the average rental price for industrial land in Grade 1 markets in the Southern region reached $189/m2/remaining term, increasing by 1% compared to the previous quarter and 13% higher than the same period last year. The market recorded significant transactions from Chinese and Japanese companies in various industries such as mechanical engineering, chemicals, plastics, rubber, and electronics.

In the Northern region, the average occupancy rate of Grade 1 industrial parks reached 80.2%, decreasing by 2.4 percentage points compared to the second quarter and increasing by 0.4 percentage points year on year. The decrease in occupancy rates by quarter is due to the operation of new industrial parks in Bac Ninh and Hung Yen, leading to an additional 597 hectares of industrial land supply.

In terms of demand, the market continues to record significant transactions from tenants in the plastics, textile, and eyeglass manufacturing industries in many provinces and cities. The absorption rate of industrial land in Grade 1 markets reached 251 hectares in the quarter. In total, in the first nine months of the year, the absorption rate exceeded 700 hectares, which is 18% higher than the absorption rate for the entire previous year. Industrial land rental prices continue to rise due to high demand. Specifically, the average rental price for Grade 1 markets in the Northern region reached $131/m2/remaining term, increasing by 2% in the quarter and 12% annually.

In the first 9 months of the year, the Southern and Northern markets recorded 450,000 m2 and 752,000 m2 of newly operational warehouses, respectively. With abundant new supply, the rental prices for warehouses and ready-built warehouses remain relatively stable, with an average rental price of $4.5/m2/month for warehouses and $4.9/m2/month for ready-built warehouses in the Southern market.

The occupancy rate of ready-built warehouses reached 56%, decreasing by 15 percentage points compared to the second quarter and 13 percentage points compared to the same period last year. Meanwhile, the occupancy rate of ready-built factories continues to maintain at a good level, reaching 91%, which is 1 percentage point higher than the second quarter. In the Northern market, the average rental price for warehouses is around $4.6/m2/month, and for factories, it is around $4.8/m2/month.

The occupancy rate of Grade 1 ready-built factory projects reached 82.9%, increasing by 4.7 percentage points compared to the previous quarter. For the ready-built warehouse market, major transactions continue to come from markets with large supply sources such as Bac Ninh and Hai Phong. The main demand still comes from 3PL companies and food production companies. The occupancy rate for ready-built warehouse segments reached 76.8% by the end of the third quarter of 2023, an increase of 1.2 percentage points compared to the previous quarter.

資料來源：Dan Tri News| 連結
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 FCC Partners President – Mr. CY Huang

Last month, President Biden’s visit to Vietnam elevated the bilateral relationship to the level of a “comprehensive strategic partner.” A joint statement between the two countries recognized “innovation” as one of their strategic cooperation areas, including the semiconductor industry.

Recently, during a summit with the theme “Connecting Vietnam with the Southeast Asian Semiconductor Ecosystem,” Vietnam’s Minister of Planning and Investment emphasized that Vietnam’s economic development strategy from 2021 to 2030 is focused on rapid promotion of sustainable development based on science, technology, innovation, and digital transformation.

Vietnam has established national innovation centers and three high-tech zones in Ho Chi Minh City, Hanoi, and Danang, prepared to attract investors into the semiconductor industry with high incentive mechanisms. Southeast Asia is one of the world’s fastest-growing regions economically, and connecting Vietnam with the Southeast Asian semiconductor ecosystem represents Vietnam’s effort to upgrade its industries. South Korean company Hana Micron recently announced a $1 billion investment in local chip production.

During President Biden’s visit to Vietnam, a rare earth cooperation agreement was also signed, enhancing Vietnam’s capacity to attract foreign investment in exploiting its rare earth resources. As the world’s second-largest reserve of rare earth elements, Vietnam plans to reopen its largest rare earth mine next year with Western support, challenging China’s dominance in the rare earth market. The U.S. plans to establish a rare earth supply chain in Vietnam for use in electric vehicles, smartphones, and wind energy industries.

Why is the U.S. pushing semiconductor and rare earth industries in Vietnam? Firstly, it acknowledges Vietnam’s strategic position in the Southeast Asian supply chain and supports shifting the supply chain from China to India, Vietnam, and Mexico. Secondly, the focus is on moving up the value chain rather than relying solely on cheap labor. Furthermore, the U.S. does not want Taiwan to dominate the semiconductor industry entirely.

Under geopolitical pressure, TSMC has expanded its manufacturing to the U.S., Japan, and Germany. India has its own ambitions in semiconductor development, and Singapore has established a semiconductor industry cluster. Vietnam is becoming the next market where the U.S. can exert influence in the semiconductor sector. Despite good relations between Vietnam and China, Vietnam is using American technology to strengthen itself.

The U.S. and China are in intense global competition, seeking to form alliances. President Biden has recently promoted the “Indo-Pacific Corridor” connecting the EU, India, and the Middle East, clearly countering China’s “Belt and Road Initiative.” Additionally, the U.S. has invited eighteen Pacific island nations to Washington, indicating its desire to step out of the traditional Western G7 circle and begin undermining emerging market countries. President Xi Jinping is planning to visit Hanoi soon, showing that Biden has indeed touched China’s sensitive nerves.

“Bidenomics” uses government resources for massive investment in key industries, builds domestic supply chains, and provides subsidies. Many of these policies are learned from China, including national industrial policies and the “Belt and Road Initiative.” However, the results are still waiting for validation over time. TSMC’s U.S. factory demonstrates that the semiconductor ecosystem is not easily replicable.

Compared to this, the U.S. is investing in money and technology in emerging countries, seeking diplomatic alliances and containment of China. Emerging countries understand that the U.S. has been hit hard by automotive strikes, and China has become a leader in clean energy. However, the U.S. is the only one with the technology in the semiconductor industry. While it may be challenging for Vietnam to create a semiconductor cluster in the short term, the U.S. can use semiconductors to achieve its diplomatic goals.

The future of Taiwan’s industry requires a global layout. But are we merely pawns helping others succeed, or can we lead the integration of related resources? This is worth pondering. If globalization doesn’t strengthen our own territory, it will dilute resources and focus. Citibank’s recent global strategy is a lesson.

Looking at Huawei as an example, China actively cultivates local supply chains and is bound to accelerate the movement of Taiwan’s supply chain overseas. Vietnam and Thailand are the top choices. The challenge for Taiwanese businesses is that they are constrained by the ecosystem, with China dominating electric vehicles and the U.S. controlling semiconductors. If Taiwan’s overseas factories become disconnected from the ecosystem, it will be difficult to create value, and a careful plan for Taiwan’s role in the supply chain is needed.

Source: Union Daily News| Link

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After years of attempting to develop its semiconductor industry and experiencing stagnation, Vietnam is extending its hand to global chip manufacturers, sparking a surge in chip investments. (Image source/Hana Micron official website)

On October 3rd, it was reported that South Korean memory chip manufacturer Hana Micron will invest $1 billion in chip production in Vietnam, in response to the policies of the Vietnamese government aimed at attracting chip companies. This Samsung supplier has begun transferring its equipment to a new factory.

After years of attempting to develop its semiconductor industry and experiencing stagnation, Vietnam is extending its hand to global chip manufacturers, sparking a surge in chip investments.

Hana Micron plans to invest $1 billion in chip production in Vietnam

Hana Micron plans to invest $1 billion in chip production in Vietnam by 2025, marking the latest wave of semiconductor investments flooding into this communist country.

The South Korean chip packaging and memory manufacturer told Nikkei Asia, ‘The company is in the process of transferring equipment to its second factory in Bac Giang province to prepare for production, and our customers’ audit schedules are quite busy.’ This province is now home to three Apple suppliers, and neighboring Bac Ninh province is famous for producing a majority of Samsung phones globally.

‘Hana Micron’s plant construction plan plays a crucial role in the socio-economic development of Bac Giang province and aligns with the government’s development direction, which will create opportunities to attract more high-tech projects and lay the foundation for the development of the semiconductor production ecosystem,’ said Hwang Chul Min, HR Manager at Hana Micron, in an interview with Nikkei News.

These recent announcements are providing momentum for both global chip manufacturers and Vietnam. Global chip manufacturers are driven by geopolitical pressures to diversify their supply chains, and after years of stagnation, Vietnam has finally succeeded in attracting these companies.

Samsung Electronics has already invested heavily in Vietnam