Foxconn to invest $80M in Vietnam province for chip manufacturing expansion

By Tri Khang November 2, 2024 | 11:46 pm PT

A woman carrying an umbrella walks past the logo of Foxconn outside a company's building in Taipei, Taiwan, Oct. 31, 2022. Photo by Reuters

Shunsin Vietnam Technology Co., Ltd., a subsidiary of Taiwanese electronics giant Foxconn, is seeking an environmental permit for an US$80-million investment project in the northern Bac Giang Province, aimed at manufacturing and processing chips.

According to the Environmental Impact Assessment Report under review by the Ministry of Planning and Investment, Shunsin will contribute $20 million to the project, with the remaining $60 million sourced from loans and fundraising.

The project will focus on producing and processing electronic components, specifically integrated circuit boards, with an annual capacity of 4.5 million units. All products will be exported to the U.S., EU, and Japan.

Integrated circuits (ICs), commonly referred to as chips, are electrical circuits containing semiconductor elements like transistors, resistors, and capacitors, designed for specific functions.

Shunsin plans to complete all procedural requirements, including obtaining construction permits, by December. Construction and equipment installation are expected to continue until May 2026, followed by trial operations in June 2026. Full-scale operations are projected to begin in December 2026.

The project will span an area of 44,343.8 square meters in the Quang Chau Industrial Park.

At full capacity, the project will require approximately 1,450 workers, including 35 foreign experts.

Shunsin highlighted that the production technology will be based on a closed system already in use at its factories in China. The production lines will feature high levels of automation to ensure worker safety, operational stability, and enhanced productivity.

Foxconn, the world’s largest electronics and computer component manufacturer headquartered in Taiwan, is expanding its investment footprint in Vietnam. In a report to Bac Giang authorities, Foxconn indicated plans to boost investments in the province, aligning with its strategic shift away from China and addressing growing client demand.

Foxconn has been operating in Vietnam since March 2007, constructing factories in Bac Ninh, Bac Giang, and other provinces to produce a variety of products, including computers, IT devices, consumer electronics, automotive components, and semiconductor equipment.

One major project by Foxconn in Bac Giang is Fukang Technology, with an investment exceeding VND12.5 trillion ($US494 million). The company is also pursuing environmental permits for an emissions treatment system for its iPad and MacBook production lines in the province.