Large semiconductor and electronics companies are expanding their operations in Vietnam, further solidifying the country's reputation as an attractive investment destination.
According to data from the General Department of Customs, in the first half of December, the import expenditure for computers, electronic products, and components reached $4.52 billion, bringing the total import value of these goods to $102.25 billion so far this year, a 21.4% increase compared to 2023. Meanwhile, the General Department of Customs has stated that by 2024, the export value of computers, electronic products, components, and smartphones is expected to reach $120 billion. In comparison, last year's export value was nearly $110 billion, with $57.3 billion coming from computers, electronic products, and components, and the remainder from smartphones.
Synopsys, Nvidia, and Marvell
Leading U.S. electronic design automation company Synopsys opened its fourth office in Vietnam last week in Hanoi. The chip manufacturer already has two offices in Ho Chi Minh City and one in Da Nang on the central coast, and is expanding its involvement in Vietnam's semiconductor industry.
During U.S. President Joe Biden's visit to Hanoi on September 10-11, 2023, the relationship between the two countries was elevated to the highest diplomatic status. A week later, Synopsys began collaborating with the Department of Information and Communications Technology under Vietnam's Ministry of Information and Communications to promote the development of the semiconductor industry in Vietnam.
Synopsys is committed to helping the country's semiconductor industry cultivate chip design talent and enhance research and manufacturing capabilities. Following the opening of its fourth office in Vietnam, the company is recruiting new employees.
On December 5, 2024, Nvidia signed an agreement with the Vietnamese government to jointly establish an AI research and development center and data center in Vietnam, which is expected to position the country as an AI hub in Asia supported by Nvidia. Nvidia CEO Jensen Huang stated that this is the "ideal time" for Vietnam to build its AI future, referring to the event as "Nvidia Vietnam's birthday."
Nvidia also announced the acquisition of healthcare startup VinBrain from the Vietnamese conglomerate Vingroup. The transaction value has not been disclosed. VinBrain has provided solutions to 182 hospitals in countries including Vietnam, the U.S., India, and Australia to enhance the efficiency of medical professionals.
In April 2024, Vietnamese tech company FPT announced plans to build a $200 million AI factory utilizing Nvidia's graphics chips and software. According to a memorandum of understanding signed by the two companies, the factory will be equipped with supercomputers based on Nvidia's latest technology, such as the H100 Tensor Core GPUs, and will provide cloud computing for AI research and development.
Another U.S. company, Marvell Technology, plans to open a new design center in Ho Chi Minh City in 2025, following the establishment of a similar facility in Da Nang, which is set to begin operations in the second quarter of 2024.
In May 2024, Marvell stated, "The growth in business scope demonstrates the company's commitment to building a world-class semiconductor design center in the country." It also announced that its workforce in Vietnam had increased by over 30% in just eight months, from September 2023 to April 2024.
At the U.S.-Vietnam Innovation and Investment Summit held in September 2023, Marvell's Chairman and CEO Matt Murphy attended the summit, where the chip design specialist committed to increasing its workforce in Vietnam by 50% within three years.
Loi Nguyen, a local from Ho Chi Minh City and currently the Executive Vice President of Cloud Optical at Marvell, described his return to Ho Chi Minh City as "coming home."
Goertek and Foxconn
With the support of the International Finance Corporation (IFC), the World Bank's private sector investment arm, Chinese electronics manufacturer Goertek plans to double its drone (UAV) production in Vietnam to 60,000 units per year.
Its subsidiary, Goertek Technology Vina, is seeking approval from Vietnamese officials to expand in Bac Ninh Province, which borders Hanoi, as part of its commitment to invest $565.7 million in the province, home to Samsung Electronics' production facilities.
Since June 2023, the factory in the Que Vo Industrial Park has been producing 30,000 drones annually through four production lines. The factory is designed for an annual capacity of 110 million units, producing not only drones but also headphones, virtual reality headsets, augmented reality devices, speakers, cameras, flying cameras, printed circuit boards, chargers, smart locks, and gaming console components.
According to Goertek's plan, the factory will expand to eight production lines, producing 60,000 drones annually. It will also manufacture 31,000 drone components each year, including chargers, controllers, map readers, and stabilizers, which are currently not produced at the factory.
Taiwanese giant Foxconn will reinvest $16 million in its subsidiary, Compal Technology (Vietnam) Co., located in Quang Ninh Province near the Chinese border.
Compal Technology received its investment registration certificate in November 2024, increasing its total investment from $137 million in 2019 to $153 million. The expansion is set to officially commence in April 2025, aiming to increase the production of electronic components and frames for electronic products (desktops, laptops, tablets, and server stations). The subsidiary plans to increase its workforce from the current 1,060 to 2,010 employees.
Foxconn is a major supplier for Apple and has several production bases in northern Vietnam. Its subsidiary, Sunwoda Electronic (Bac Ninh) Co., is reinvesting $8 million in its production facility in Bac Ninh Province, near Hanoi, to produce integrated circuits.
The Vietnamese factory is expected to install equipment by May 2026, with trial production starting a month later and full operations commencing in December 2026.
Following the expansion of its factory in the Gwangju Industrial Park, the company will produce 4.5 million vehicles annually, all of which will be shipped to the U.S., Europe, and Japan.
Post time: Dec-23-2024