Electronics

According to Vietnamese media reports on the 6th, Samsung Electronics President Lu Taiwen met with Vietnamese Prime Minister Pham Minh Chin to prepare for Samsung's layout in Vietnam. Samsung Electronics will establish a new R&D center in Hanoi, Vietnam in the fourth quarter of this year or early next year, and plans to start in the middle of next year. Produce chips in Vietnam and expand the production layout of semiconductor chips in Vietnam.

The report pointed out that Samsung Group is planning the production conditions for wafer trial production. It is scheduled to mass-produce chips at Samsung Electro-Mechanics Vietnam’s Thai Nguyen plant in July 2023. It will open an R&D center in Hanoi at the end of 2022 and early 2023. The Vietnam R&D center will be located in Southeast Asia. The main research and development base, at present, the construction progress of the research and development center has been completed about 85%.

Samsung President Roh Tae Van said that Samsung plans to invest another US$3.3 billion and promote cooperation with Vietnamese universities and research institutions. Vietnamese Prime Minister Pham Minh Chin believes that Samsung has developed efficient business in the field of mobile phones and home appliances, and semiconductor production is expected to form a Samsung electronic product production supply chain in Vietnam.

It is understood that in the first half of this year, Samsung's export revenue from Vietnam was 34.3 billion US dollars, an increase of 18% year-on-year. Samsung Group's target revenue this year is 69 billion US dollars, which is equivalent to 20.5% of Vietnam's export of 336.31 billion US dollars last year. South Korea has a strong relationship with Vietnam and is the third largest trading partner after China and the United States. About 60% of Samsung mobile phones are produced in Vietnam. As of June 2022, Samsung Group’s investment in Vietnam has exceeded 200. One hundred million U.S. dollars.

In recent years, due to the rapid development of product import and export trade, Vietnam's economy has achieved rapid development. According to data released by Vietnam Customs, the total import and export volume of Vietnam in the first quarter has just hit a record high, exceeding US$176.35 billion, a year-on-year increase of 14.4%. In addition, Vietnam's well-developed port industry, superior transportation conditions, and domestic demographic dividends make Vietnam an investment destination for semiconductor companies with great development potential, including Hitachi, Toshiba, Qualcomm, Samsung, Broadcom, NXP, Intel and many other companies. Invest in factories.

In addition, in addition to Vietnam, Samsung Electronics will also build a new wafer foundry in the United States, and will apply for additional expansion sites in the near future. According to official external news, Samsung's goal is to triple its semiconductor chip production capacity by 2026.