Linkcom Manufacturing, a Taiwan-based supplier of magnetic components and power supply modules, is evaluating the feasibility of establishing a plant in Vietnam.
Quoting company sources, leading Taiwanese tech magazine Digitimes said Friday that the investment plan is being considered to respond to customer demand for the company to set up additional production sites outside mainland China and Taiwan.
“The company will reveal more details about the outgoing expansion plan in this year's second half,” Digitimes said.
Linkcom was set up in 1988, starting its magnetics business in designing, manufacturing, and marketing. It also provides wireless charging modules under the U-Way brand.
The Linkcom move follows other Taiwanese electronics makers, including Quanta Computer, Foxconn, Pegatron, Wistron, Compal Electronics, and Inventec Corp. in increasing investment in Vietnam in recent years.
On April 21, Quanta signed an agreement with authorities in Nam Dinh to build a 22.5-hectare factory in the northern province as part of its supply chain diversification strategy. The Apple supplier plans to invest $50 million in the project but did not disclose whether the new facility will be used for Apple production purposes.
Meanwhile, Taiwanese manufacturer Foxconn had earlier planned to start making MacBooks for Apple in Vietnam this May. The giant announced a $300 million investment in Quang Chau Industrial Park in Bac Giang province near Hanoi in August 2022, then signed a new lease this February renting a plot of 50 hectares for $62.5 million until 2057.
BOE Technology Group Co., one of the world's largest manufacturers of displays, plans to build two new factories in Vietnam, with likely investments of up to $400 million. The China-based company is a supplier of Apple and Samsung Electronics.
More than half of Samsung smartphones are produced in Vietnam. The Korean giant also operates a new $220 million research and development center in Hanoi, launched in December last year, and is turning it into a leading global hub.