Senao Networks, a Taiwanese maker of data networking and telephony products, has said it wants to invest in a $30 million plant in Vietnam, part of its supply chain diversification strategy.
This Senao plan coincides with a wave in which mainland Chinese and Taiwanese manufacturers allocate production outside of China with plans to launch more manufacturing lines in Vietnam, a new global manufacturing base.
In an announcement earlier this January, Senao financial controller Kim Yu said the company’s board of directors has approved the investment for the Vietnam factory, with the projected time of investment being this first quarter. However, the factory location has not been finalized.
While Senao is in the process of making decisions, Taiwan-based contract computer maker Wistron is accelerating the giant’s buildup in Vietnam.
China now accounts for less than 50% of Wistron's total manufacturing capacity, the company said, adding that Vietnam would replace China as its new notebook computer manufacturing hub, according to a Taipei Times report on January 18.
The Apple supplier has invested about $300 million into Vietnam and is operating only one facility in Ha Nam province, about 50 kilometers south of Hanoi. Wistron Infocomm Vietnam manufactures displays, computer peripherals, and devices, but the subsidiary is not yet an Apple supplier.
Taiwanese firm Compal Electronics, a supplier to Apple, Amazon, and Dell, signed a deal this December to lease 40 hectares of land in Thai Binh province, also near Hanoi, for its new $260 million investment in Vietnam.
Compal is a key manufacturer of the iPad and Apple Watch, Google’s Pixel phone, and Amazon's Echo smart device. Compal expanded its Vietnam production in 2021 by adding more manufacturing capacity to its existing facility in Vinh Phuc province bordering Hanoi.
At present, BYD, dubbed China’s Tesla, is planning to build a car parts plant also in northern Vietnam for supply chain diversification. At least $250 million is estimated for the new investment but the factory location has been not finalized.
BYD’s presence in Vietnam currently includes an electronics unit that makes solar panels. BYD Electronics (Vietnam) Company Ltd in the northern province of Phu Tho is also a supplier for Apple.
Global electronics producer Foxconn, headquartered in Taiwan, plans to make MacBooks for Apple Inc. for the first time in Vietnam from this May. In addition, it is also studying the feasibility of producing servers in the Southeast Asian country.