Foxconn Singapore has been granted a license to invest $551 million in two innovative projects aimed at producing smart entertainment products and smart-system equipment in Quang Ninh, a northern province of Vietnam, as reported by state media. This move marks a significant expansion for Foxconn, the world’s leading contract electronics manufacturer and assembler, known for its substantial operations in Vietnam.
Foxconn, listed as 2354.TW on the Taiwan Stock Exchange, has not yet responded to requests for comments. However, this latest development underscores the company’s continued commitment to expanding its footprint in Southeast Asia.
The newly approved investments include two major projects:
1. Smart Entertainment Products:
- Investment: $263.7 million
- Annual Capacity: 4.18 million units
- Unit: Foxconn Singapore
2. Smart-System Equipment:
- Investment: $287.2 million
- Project Area: 12.4 hectares (30.64 acres)
- Location: Quang Ninh
According to Quang Ninh newspaper, Foxconn Singapore, a subsidiary of the Taiwanese technology giant, will oversee the $263.7 million investment dedicated to the production of smart entertainment products, which is projected to yield an annual output of 4.18 million units. The second venture, valued at $287.2 million, will focus on manufacturing smart-system equipment, spanning an area of 12.4 hectares.
The investment certificate outlines a comprehensive timeline for these projects. Construction is scheduled to be completed by July 2026, followed by a period dedicated to the installation of machinery and trial operations. Official production is expected to commence in May 2027.
Foxconn’s strategic investments in Vietnam are not new. Last year, the company announced a $250 million investment in two projects in Quang Ninh aimed at manufacturing electric vehicle components and telecom parts. This initiative is part of Foxconn’s broader strategy to diversify its production base and leverage Vietnam’s growing manufacturing capabilities.
Since its initial entry into Vietnam in the early 2000s, Foxconn has invested over $3.2 billion in the country. The majority of its manufacturing facilities are located in the northern provinces of Bac Ninh and Bac Giang. These provinces have become key hubs for Foxconn’s production activities, contributing significantly to the local economy and job market.
In addition to the recent investments, Vietnamese state media reported last month that Foxconn has been granted a license for a $383 million project to produce printed circuit boards. This project is expected to further solidify Foxconn’s position in the Vietnamese market and enhance its production capabilities in the region.
- Foxconn’s $551 million investment in Quang Ninh marks a significant expansion in its smart technology manufacturing capabilities.
- The two projects are expected to complete construction by July 2026, with production starting in May 2027.
- Foxconn’s total investment in Vietnam exceeds $3.2 billion since the early 2000s.
Foxconn’s Major Projects in Vietnam
| Project | Investment (in USD) | Focus Area | Annual Capacity | Completion Date | Production Start |
|---|---|---|---|---|---|
| Smart Entertainment Products | $263.7 million | Smart Entertainment | 4.18 million units | July 2026 | May 2027 |
| Smart-System Equipment | $287.2 million | Smart Systems | N/A | July 2026 | May 2027 |
| Electric Vehicle and Telecom Parts (2023) | $250 million | EV and Telecom Parts | N/A | N/A | N/A |
| Printed Circuit Boards (2024) | $383 million | PCBs | N/A | N/A | N/A |
Foxconn’s expansion in Vietnam reflects a strategic shift as the company aims to capitalize on the Southeast Asian country’s manufacturing potential. The region’s favorable investment climate, skilled workforce, and competitive production costs have made it an attractive destination for tech giants like Foxconn.
As Foxconn continues to grow its operations in Vietnam, these investments are expected to drive technological innovation and economic growth in the region. The company’s commitment to developing state-of-the-art manufacturing facilities and producing high-tech products aligns with Vietnam’s ambitions to become a global manufacturing powerhouse.
In conclusion, Foxconn’s significant investments in Vietnam underscore its long-term vision to diversify its manufacturing capabilities and strengthen its position in the global market. With the latest projects in Quang Ninh, Foxconn is poised to enhance its production of smart technology products, contributing to Vietnam’s economic development and technological advancement.
Featured Image courtesy of Bloomberg.com