Foxconn considers building servers in Vietnam: industry report
Global technology manufacturer Foxconn, which is set to make Apple MacBooks in Vietnam for the first time from May 2023, is also studying the feasibility of producing servers in the Southeast Asian country, according to Digitimes Research.
The study is part of a partial migration of server manufacturing from China to Southeast Asia, Taiwan, and North America, said a research report from Digitimes, a Taiwan-based newspaper for semiconductors, electronics, computers, and communications.

Logo of Foxconn, a world's top electronics production contractor. Photo courtesy of the firm.
Authorities in Bac Giang province near Hanoi are scheduled to hand out an investment license to Foxconn on January 2, 2023 for the Taiwanese giant to invest an additional $600 million to build a new plant in Quang Chau Industrial Park to make MacBooks.
Foxconn is expected to invest further into the project after the first phase, said Nguyen Thi Thu Huong, CEO of Kinh Bac City Development Holding Corp, which owns and operates Quang Chau IP. She did not mention what Foxconn plans to produce in the second phase.
In their latest report, the Digitimes Research team said the U.S.-China trade war, decarbonization, and geopolitical factors have been the driving forces behind this migration of server production to Southeast Asia, Taiwan, and North America.
“The growing presence of Southeast Asia and North America in the server manufacturing sector is especially significant,” said the report. Nearly 60% of the world's servers have been produced in China in 2022, but the percentage has actually decreased from 70-80% before the trade war.
"Taiwanese server manufacturers Inventec and Quanta moved part of their server supply chains back to Taiwan in 2019 in the heat of the trade war, and the trend of diversifying capacities out of China continues," said Digitimes Research analyst Frank Kung.
He estimated that China's share of global server output may drop to as low as 35% by 2024, and Southeast Asia and North America will see their server production grow by 2024.
Server manufacturers Quanta Computer and Wiwynn have decided to move some of their production lines to Thailand and Malaysia, respectively, said Kung.
Mitac Holdings has also announced that it will expand its production capacity in Southeast Asia without specifying the country where its factory will be located, he added.
"Localization and regionalization will be a global trend of no return," Kung said, noting that the demand for low latency in data transmission, and protection of sensitive data as required by regulators are important factors for server manufacturers.
The trend of hybrid cloud, which requires the combination of cloud and the edge, cannot do without the deployment of the edge, and that requires servers close to the users. The other key factor is the decarbonization requirements of the clients, including the cloud service providers and the brand-name original equipment manufacturers (OEM), who all want to keep their carbon footprints as low as possible.
At present, Quanta Computer is mulling over making MacBooks in Vietnam. It is likely Quanta will build a plant in northern Vietnam.
The Digitimes server supply chain report is similar to a mid-December research report by TrendForce, an international market intelligence provider.
TrendForce said that in the global server supply chain realignment, Southeast Asian countries have also come under consideration for capacity expansion.
The firm said it believes the core parts of the server supply chain will eventually shift to Southeast Asia and the Americas.
Wistron (which encompasses Wiwynn) plans to set up a production base in Malaysia at the beginning of 2023 to offer reserved production capacity that can be deployed immediately. Other major ODMs like Foxconn and Quanta have added new production capacity in Vietnam, Thailand, the U.S., and Mexico so that they can maintain production flexibility, said TrendForce.
It especially pointed out that the relocation efforts taking place across the server supply chain are expected to bring about a lot more changes in the future.
On the demand side, major North American corporations like Google, AWS, Meta, and Microsoft have moved most of their ODM partners’ level-6 server production lines to Taiwan and made plans to set up production capacity in Southeast Asia to further minimize geopolitical risks.
In conclusion, TrendForce believed China and Taiwan’s shares of level-6 server production lines will shrink over the long term.
In global server manufacturing, there are 11 levels. Among them, levels 1 to 6 are performed by ODMs; levels 6 to 10 by OEMs; while levels 10 to 11 are for service providers to activate their services.
- Read More
Sumitomo seeks to clear hurdles for industrial park expansion in northern Vietnam
Japanese conglomerate Sumitomo has called on authorities in Hung Yen province to resolve several pressing issues affecting the expansion of Thang Long Industrial Park II (TLIP II), one of the largest industrial parks in northern Vietnam.
Industrial real estate - Sun, July 13, 2025 | 8:00 am GMT+7
Rixos debuts in Southeast Asia on Vietnam’s 'Pearl Island'
A new chapter in travel is unfolding in Southeast Asia as Rixos Hotels, the world’s leading all-inclusive brand, prepares to unveil its first-ever resort in the region.
Travel - Sat, July 12, 2025 | 6:48 pm GMT+7
Vietnam’s biggest airport project ‘races to the finish line’
The Ministry of Construction has requested investors of the Long Thanh International Airport to complete the main route by August 2025 to facilitate trial operations of the passenger terminal and other components.
Infrastructure - Sat, July 12, 2025 | 6:19 pm GMT+7
Singapore's YCH Group eyes developing logistics center in southern Vietnam economic zone
Tay Ninh province has pledged full support to Singapore’s YCH Group in developing a logistics center within its Moc Bai Border Gate Economic Zone.
Industries - Sat, July 12, 2025 | 1:48 pm GMT+7
Vietnam PM asks US firms to sustain support for 'reasonable, detailed tariff pact'
Prime Minister Pham Minh Chinh has called on U.S. businesses to continue supporting the Vietnamese government in dialogues with U.S. agencies to soon reach "a reasonable, detailed tariff agreement for individual products and product groups".
Economy - Sat, July 12, 2025 | 11:32 am GMT+7
Mergers of Vietnamese provinces unlock new property development opportunities
The merging of Vietnamese localities is expected to create a strong "boost" for the real estate market as expanded planning space, synchronized infrastructure, and new land reserves are key factors driving the market's transformation.
Real Estate - Sat, July 12, 2025 | 11:00 am GMT+7
Measures proposed for Thailand to minimize US tariff impacts
Financial and banking experts in Thailand have warned that the U.S.'s proposed 36% tariff on Thai goods is likely to severely undermine Thailand's export competitiveness.
Southeast Asia - Sat, July 12, 2025 | 9:06 am GMT+7
Chinese construction major PCG eyes $383 mln underwater tunnel project in northern Vietnam
Pacific Construction Group (PCG), one of China’s leading construction firms, has expressed interest in developing a VND10 trillion ($383 million) underwater road tunnel in Quang Ninh, a coastal province in northern Vietnam.
Infrastructure - Sat, July 12, 2025 | 8:04 am GMT+7
Vingroup stocks pull VN-Index up for sixth consecutive session
VN-Index, which represents the Ho Chi Minh Stock Exchange, on Friday increased for the sixth consecutive session thanks to large-cap stocks, with foreign investors continuing to strongly net buy.
Finance - Fri, July 11, 2025 | 7:20 pm GMT+7
Coca-Cola inaugurates largest-scale Vietnam factory in Tay Ninh province
Coca-Cola Beverages Vietnam on Friday inaugurated a $136 million factory in Tay Ninh province, the largest-scale among its four facilities in Vietnam.
Industries - Fri, July 11, 2025 | 5:27 pm GMT+7
Vietnam halts use of German ODA loans for HCMC metro line
The Government has approved a proposal by Ho Chi Minh City to stop borrowing official development assistance (ODA) loans from Germany’s KfW development bank for Metro Line No. 2 and instead use domestic funds to avoid further delays.
Economy - Fri, July 11, 2025 | 3:25 pm GMT+7
Seventeen housing projects foreigners allowed to buy in HCMC
Ho Chi Minh City has announced a list of 17 residential projects located in areas where foreign organizations and individuals are allowed to own houses.
Real Estate - Fri, July 11, 2025 | 3:17 pm GMT+7
Auto enterprises to enjoy preferential import tariff policies
The Government has issued a decree amending and supplementing Decree No. 26/2023/ND-CP on the export and preferential import tariff schedules, as well as the lists of goods subject to absolute tax, mixed tax, and out-of-quota import duties.
Companies - Fri, July 11, 2025 | 2:13 pm GMT+7
Korean chaebol Samsung’s revenue makes up 13% of Vietnam’s GDP in 2024
Samsung’s revenue and export in Vietnam accounted for approximately 13.12% of the country’s GDP and 13.4% of its total export turnover in 2024, respectively, according to the National Statistics Office.
Companies - Fri, July 11, 2025 | 2:09 pm GMT+7
JPMorgan upgrades Vietnam stocks to overweight following US tariff deal
JPMorgan Chase has upgraded Vietnam stocks to overweight after the country became the first Southeast Asian nation to reach a preliminary tariff deal with the U.S.
Economy - Fri, July 11, 2025 | 11:38 am GMT+7
Vietnam government bond issuance surges nearly 70% in June
The Hanoi Stock Exchange (HNX) held 16 government bond auctions in June, raising nearly VND30.5 trillion ($1.2 billion), up 68.8% from May.
Finance - Fri, July 11, 2025 | 9:30 am GMT+7