Major Taiwan electronics makers charmed by Vietnam

By Nguyen Thuy
Wed, August 23, 2023 | 2:41 pm GMT+7

Leading Taiwan-based electronics manufacturers, in their efforts to diversify supply chains, have constantly found Vietnam as a destination to open new factories or expand production.

Among those having established a second supply chain in the Southeast Asian country is tech giant Foxconn, the world’s largest contract electronics manufacturer. Joining the heavyweight is a long list of other Taiwan-based producers like Compal, Quanta, Wistron, and Pegatron.

A sign of Foxconn, a world's top electronics production contractor. Photo courtesy of the firm.

A sign of Foxconn, a world's top electronics production contractor. Photo courtesy of the firm.

Vietnam is already the largest production hub outside China for Taiwan-based electronics makers. Foxconn, Compal, and Wistron have started mass production and shipments. It is expected that once Quanta, another giant, begins mass production in the market, electronics production in Vietnam will further increase.

Original design manufacturers (ODMs) have been manufacturing electronics and smartphones in Vietnam for years. More than half of Samsung smartphones are made in the country, where national- and local-level administrations and workforce are familiar with the electronics assembly sector.

As for Foxconn, its Shenzhen-based subsidiary Foxconn Industrial Internet (FII) will “exclusively” supply Apple with made-in-Vietnam servers for training and testing artificial intelligence (AI) services, according to a report by Taiwan’s Economic Daily News, as the world’s most valuable company continues to diversify its manufacturing supply chain away from China.

The report, published on August 7, said that Foxconn accounted for about 43% of the global server market. FII has supplied its servers to Amazon Web Services, ChatGPT creator OpenAI and chip maker Nvidia, the report added.

In May, Nam Dinh province granted an investment certificate for Apple supplier Quanta to build a $120 million factory in the northern province, the giant’s first in Vietnam and its ninth worldwide. The plant, located in My Thuan Industrial Park, is set to manufacture 1.3 million laptop and desktop computers in 2024, 2.6 million in 2025, 3.6 million in 2026, four million in 2027, and 4.5 million in 2028.

Back in 2007, Compal said it was establishing a factory in Vietnam to diversify its supply chain. Foxconn came in the same year, gradually making Vietnam a globally popular location for making electronics.

Dell, an American tech giant like Apple, mainly outsources its manufacturing to Compal and Wistron, while Apple outsources to Foxconn and Quanta.

Quanta said it expected to complete the first-phase construction of the Vietnam plant next February 1, 2024, and the initial phase’s investment is about $22 million.

Compal’s operational production lines at its plant in Vinh Phuc province bordering Hanoi mainly produce networking and smart handheld devices. PC-related products also started small-scale production in 2022. Compal announced in December 2022 the construction of its third factory at the Lien Ha Thai Industrial Park in Thai Binh province, also in the Greater Hanoi region, expected to complete in 2024. Products will include both PCs and non-PC products.

Wistron began construction for two factories in the Dong Van III Industrial Zone in November 2019. Construction was completed in 2020 and mass production began in 2021, with PCs and displays being the main products.

The two facilities almost reached full capacity earlier this year. Therefore, Wistron is in the process of establishing the third factory, with mass production expected to start in 2024, with notebooks as the main product.

Wistron’s board of directors approved a proposal to inject an additional $24.5 million into Vietnam for the new project, but they have not disclosed the new production location.

Like Wistron, Apple supplier Catcher Technology, a world-leading chassis maker, is in the process of building a production plant in Vietnam as other Taiwanese companies shift production to the country.

Taiwan-based Catcher is expected to begin work on this factory in this year’s fourth quarter. Neither the investment capital nor the location has been known.

Comments (0)
  • Read More
Malaysia-EU FTA expected to promote ASEAN-EU ties

Malaysia-EU FTA expected to promote ASEAN-EU ties

The EU is placing high expectations on the Free Trade Agreement (FTA) with Malaysia as a central pillar in its strategy to strengthen relations with the Association of Southeast Asian Nations (ASEAN) amid escalating global uncertainties.

Southeast Asia - Wed, May 14, 2025 | 10:17 pm GMT+7

Malaysia works hard to expand semiconductor ecosystem

Malaysia works hard to expand semiconductor ecosystem

Malaysia needs to broaden its manufacturing ecosystem beyond assembly lines and semiconductors to fully capitalize on foreign investments, towards becoming a more complete manufacturing hub.

Southeast Asia - Wed, May 14, 2025 | 10:14 pm GMT+7

Vietnam's Phu Quoc airport to undergo major upgrade ahead of APEC 2027

Vietnam's Phu Quoc airport to undergo major upgrade ahead of APEC 2027

Phu Quoc International Airport in the southern province of Kien Giang will be expanded and upgraded to support local economic development, while ensuring transport infrastructure for hosting the 2027 APEC Economic Leaders' Week.

Travel - Wed, May 14, 2025 | 9:57 pm GMT+7

Banks cut staff, transaction branches amid accelerating digital transformation

Banks cut staff, transaction branches amid accelerating digital transformation

A series of banks have announced plans to cut staff and transaction offices, setting off a wave of job losses in the banking industry that has been considered one of the hottest professions in recent years.

Companies - Wed, May 14, 2025 | 9:51 pm GMT+7

Malaysia’s maritime sector struggling due to new US tariff policy: expert

Malaysia’s maritime sector struggling due to new US tariff policy: expert

Malaysia’s maritime sector, particularly seaport transportation, faces mounting pressure from the U.S.’s tariff policy.

Southeast Asia - Wed, May 14, 2025 | 9:40 pm GMT+7

VinSpeed registers $60.24 bln investment for Vietnam's high-speed transnational railway

VinSpeed registers $60.24 bln investment for Vietnam's high-speed transnational railway

VinSpeed High-Speed Rail Investment and Development JSC, a subsidiary of private conglomerate Vingroup, on Wednesday announced its registration to invest in Vietnam’s North-South high-speed railway project.

Companies - Wed, May 14, 2025 | 9:24 pm GMT+7

Resolution 68: A new dawn for Vietnam’s private sector 

Resolution 68: A new dawn for Vietnam’s private sector 

Resolution 68, issued last week by the Politburo, Vietnam's highest decision-making body, is a landmark directive poised to redefine the landscape for private enterprises in the country. It outlines a clear vision for a rapidly developing, sustainable, and globally competitive private sector, write VinaCapital analysts.

Consulting - Wed, May 14, 2025 | 8:53 pm GMT+7

Vietnam’s dividend-paying stocks create buzz among investors

Vietnam’s dividend-paying stocks create buzz among investors

Cash dividend-paying stocks in Vietnam continue to capture attention from investors, particularly newcomers, to the stock market.

Finance - Wed, May 14, 2025 | 4:33 pm GMT+7

Bao Viet-led insurance consortium signs $2 bln deal with high-tech firm on healthcare projects

Bao Viet-led insurance consortium signs $2 bln deal with high-tech firm on healthcare projects

A consortium of insurers led by Bao Viet Insurance on Tuesday signed a framework agreement to provide comprehensive insurance services to Nhat Hai New Technology JSC (OIC New) for its healthcare projects during 2026-2036.

Finance - Wed, May 14, 2025 | 4:29 pm GMT+7

Northern Vietnam province seeks Korean law firm’s help to attract more investments

Northern Vietnam province seeks Korean law firm’s help to attract more investments

The Vinh Phuc People’s Committee has asked Lee & Ko, a leading South Korean law firm, to provide legal consultations to attract more Korean investors to the northern province.

Industries - Wed, May 14, 2025 | 1:36 pm GMT+7

Vietnam's major pharma firm DHG to pay 60% cash dividend

Vietnam's major pharma firm DHG to pay 60% cash dividend

Hau Giang Pharmaceutical JSC (DHG Pharma), a leading pharma company in Vietnam, said it will pay a 60% cash dividend, equivalent to VND6,000 ($0.23) per share.

Companies - Wed, May 14, 2025 | 12:28 pm GMT+7

Vietnam's strategic positioning in a changing global landscape

Vietnam's strategic positioning in a changing global landscape

Vietnam definitely needs foreign direct investment (FDI), but more importantly, it must cultivate internal strength, says Dr. Vu Thanh Tu Anh, a senior lecturer at the Fulbright School of Public Policy and Management.

Economy - Wed, May 14, 2025 | 12:22 pm GMT+7

Vietnam hopes for progress in US-China trade negotiations: PM

Vietnam hopes for progress in US-China trade negotiations: PM

Vietnamese Prime Minister Pham Minh Chinh on Tuesday expressed his hope that the ongoing trade negotiations between the U.S. and China will make progress and result in mutually beneficial agreements - both in the short and long term.

Economy - Wed, May 14, 2025 | 11:50 am GMT+7

Malaysia’s Gamuda acquires prime land plot to develop high-rise project in northern Vietnam

Malaysia’s Gamuda acquires prime land plot to develop high-rise project in northern Vietnam

Gamuda Berhad, a leading developer of Malaysia, has acquired a prime land plot in the northern port city of Hai Phong for $38.9 million, expanding its footprint in Vietnam.

Real Estate - Wed, May 14, 2025 | 11:10 am GMT+7

Promoting renewable energy transition: Vietnam proactively seeks technological, policy solutions

Promoting renewable energy transition: Vietnam proactively seeks technological, policy solutions

In the context that Vietnam is facing major challenges from climate change and increasing demand for electricity, the seminar "Renewable Energy Transition in Vietnam: Policy, Technology and Solutions" held on April 25 gained special attention from experts, businesses and policy makers.

Companies - Wed, May 14, 2025 | 10:00 am GMT+7

Vietnam stock market: Positive signals and investment opportunities

Vietnam stock market: Positive signals and investment opportunities

The Vietnamese stock market has been riding a wave of good news, including easing U.S.-China trade tensions, the successful rollout of the new trading system KRX, and a surge in newly opened trading accounts, opening up immense opportunities for investors.

Finance - Wed, May 14, 2025 | 8:17 am GMT+7