Foxconn Subsidiary to Invest $80M in Vietnam for Integrated Circuit Production

Foxconn's Shunsin seeks this approval for boosting integrated circuit production capacity by 4.5 million units annually

Taiwanese tech giant Foxconn's subsidiary, Shunsin, is set to invest $80 million in northern Vietnam to set up a facility that will focus on integrated circuits. The plan was contained in a document recently issued by Vietnam's Ministry of Natural Resources and Environment.

The company, located in Bac Giang province, manufactures and processes electronic component material, mainly integrated circuit boards. The record shows that Shunsin will start full-scale operation by 2026 December with an annual production volume of 4.5 million units.

However, Shunsin, majorly owned by Foxconn, did not immediately respond to requests for comments on the project. Foxconn, formally known as Hon Hai Precision Industry, is reputed to be the world's largest contract electronics manufacturer. The company has a very deep presence in Vietnam, and most of its manufacturing operations are located in the northern provinces of Bac Ninh and Bac Giang.

In a major victory in July, Foxconn, through its unit in Singapore, has been awarded a license to invest $383 million in a factory for printed circuit boards in northern Vietnam. The products are going to be exported from the new facility of Shunsin into key international markets: the United States, the European Union, and Japan.

Since its entry into Vietnam in early 2000, Foxconn has invested over $3.2 billion in different ventures across the country. The strategic investments by the firm reveal that the firm has a strong commitment to extending its production capabilities in the Southeast Asia region because this will increasingly be required for electronic production.

Shunsin's plant at Bac Giang will probably fortify Vietnam further in the international supply chain for electronic parts, while companies are seeking a diversified base of production following the shuffling geopolitics and some problems in supply chains.

Shunsin's investment and capacity expansion in Vietnam reflects an enduring strategy to tap the country's growing workforce together with its favourable investment climate. Operations that Shunsin will put online will thereby contribute significantly to both local and broader electronics sectors within the country.