Foxconn subsidiary eyes $80 million Vietnam investment for integrated circuits

Taiwanese electronics giant Foxconn, through its subsidiary Shunsin, is seeking approval for an $80 million investment in northern Vietnam to establish a facility for producing integrated circuits. The proposed plant, located in Bac Giang province, will focus on manufacturing and processing electronic components, specifically integrated circuit boards.

The move underscores Foxconn’s continued commitment to expanding its manufacturing footprint in Vietnam, a country known for its strategic geographic location, skilled workforce, and favorable investment climate. The company aims to commence full-scale operations at the new facility by December 2026, with an annual production capacity of 4.5 million units.

The integrated circuits produced at the Vietnamese plant are slated for export to key markets, including the United States, the European Union, and Japan. This strategic focus on export-oriented production aligns with Vietnam’s broader economic goals of becoming a global manufacturing hub.

Foxconn’s investment in Vietnam is part of a broader trend of multinational corporations shifting their supply chains away from China due to rising labor costs, geopolitical tensions, and disruptions caused by the COVID-19 pandemic. Vietnam has emerged as an attractive alternative, offering a stable political environment, a young and dynamic workforce, and a growing network of free trade agreements.

The Taiwanese conglomerate already has a significant presence in Vietnam, with investments exceeding $3.2 billion. Its manufacturing facilities in the northern provinces of Bac Ninh and Bac Giang produce a wide range of electronic products, including smartphones, laptops, and network equipment.

The proposed investment in integrated circuit production is expected to further solidify Foxconn’s position as a major player in Vietnam’s electronics manufacturing industry. It will also contribute to the country’s efforts to develop a more sophisticated and high-value-added manufacturing sector.

However, the project is not without its challenges. Vietnam’s infrastructure, particularly in terms of power supply and logistics, may need to be further upgraded to accommodate the increasing demand from foreign investors. Additionally, the country’s labor force, while abundant, may require additional training and skills development to meet the specific needs of the electronics industry.

Despite these challenges, Vietnam remains an attractive destination for foreign investment, and Foxconn’s latest investment underscores the country’s potential as a global manufacturing powerhouse. As the company continues to expand its operations in Vietnam, it is expected to create new jobs, stimulate economic growth, and contribute to the country’s technological advancement.