Apple supplier Wistron’s board of directors (BOD) has approved a proposal to inject an additional $24.5 million into its new manufacturing subsidiary in Vietnam in line with the electronics maker’s business expansion and strategic planning.
The new investment will go to Wistron Technology (Vietnam) Co. Ltd., a newly established subsidiary of the Taiwanese electronics giant, which is also a major graphics processing unit (GPU) server module supplier of Nvidia Inc., a U.S. multinational technology company.
Wistron announced its January-June 2023 financial and BOD results, including the new investment approval, on August 4. However, the site for this new investment has yet to be finalized.
Wistron’s net profit soared to 3.26 billion New Taiwan dollars (nearly $1.03 billion) during the second quarter, compared with NT$174 million (almost $5.48 million) in the first quarter. Earnings per share jumped to NT$1.16 ($0.037) in the second quarter from NT$0.06 ($0.0019) in the first quarter, but declined from NT$1.53 ($0.048) last year.
Wistron attributed the strong growth to its non-operating income, including foreign exchange gains of NT$1.52 billion ($47.86 million) and a revaluation of its stake in Luxshare that added NT$535 million (nearly $16.85 million).
Luxshare is Apple Inc.’s Chinese supplier of iPhones. Luxshare has six manufacturing plants in Vietnam, with three in Bac Giang province near Hanoi and three in the central province of Nghe An.
Wistron has so far invested about $300 million in Vietnam, not including the new $24.5 million approved by the BOD. It operates one facility in Ha Nam province, about 50 kilometers south of Hanoi. Wistron Infocomm Vietnam, the operational subsidiary, manufactures displays, computer peripherals and devices, but the unit is not yet an Apple supplier.
Wistron Infocomm Vietnam is located in Dong Van III Industrial Park. In July 2022, the plant received a priority enterprise certificate issued by Vietnam’s General Department of Customs. The certificate gives the company priority for customs procedures, inspections and supervision for exported and imported goods. Wistron Infocomm Vietnam was the first firm in Ha Nam province to obtain the certificate.
Wistron Technology (Vietnam) Co. Ltd., Wistron’s newly-established subsidiary, has not been registered in Vietnam.
Vietnam is already a production base for international electronics makers. Samsung has so far invested about $20 billion in the country and is about to add more. Meanwhile, the investment of its South Korean peer LG in Vietnam is about $7.5 billion.
In late June, Taiwanese electronics giant Foxconn obtained two investment certificates to invest an additional $246 million in Vietnam to build an electronic vehicle charging equipment and component production plant, and an electronic components factory. Both facilities will be located in Quang Ninh province, which borders China.
With the two new projects, Foxconn has three projects in Quang Ninh with total registered capital of $300 million, or 10% of its total investment in Vietnam, according to provincial data.
Meanwhile, the first Vietnam factory of U.S.-based Amkor Technology Inc., a global semiconductor product packaging and test services provider, is set to begin operations this October in Bac Ninh province, also near Hanoi. Amkor is investing about $1.6 billion until 2035 to build the state-of-the-art facility.