Samsung is strengthening its international supplier network and trying to expand its manufacturing business in more countries. According to Vietnamese media Lao Dong, earlier this week, Samsung Roh Tae-moon met with Vietnamese Prime Minister Pham Minh Chin to prepare for what comes next.
According to reports, Samsung Electronics is preparing to open a new R&D center in Hanoi in the fourth quarter of 2022 or early 2023 at the latest. It plans to produce chips in Vietnam from mid-2023 and expand its component production in Vietnam.
The group is preparing the conditions for trial production of semiconductor chip grid products, which will be mass-produced at Samsung Electro-Mechanics Vietnam’s Thai Nguyen factory in July 2023; it is expected to open a research and development center in Hanoi by the end of 2022, and early 2023, which is also the reason why the group is not only targeting Vietnam. Moreover, about 85% of the R&D center for Southeast Asia has been completed.
Currently, South Korea is Vietnam’s third largest trading partner after China and the United States, and about 60% of Samsung’s smartphones are produced in Vietnam’s base. As of June 2022, the group has invested more than $20 billion, about 28 times its original commitment.
In addition, Samsung Electronics will also build a new chip foundry in the United States, and recently applied for additional expansion land. The company is said to want to triple its semiconductor chip production capacity by 2026.
Roh said that Samsung plans to invest another $3.3 billion in South Korea. “The group will also help 50 Vietnamese suppliers improve their competitiveness and promote cooperation with Vietnamese universities and research institutions.”
The Vietnamese Prime Minister said the Vietnamese government is committed to creating favorable conditions for foreign investors such as Samsung and improving the business environment. “The government will also actively deal with Samsung’s proposals for training and improving the quality of human resources, according to the needs of the Samsung Group,” he added.
He asked that Samsung Electronics research and expand the production of semiconductors, one of the three pillars, in Vietnam. “Samsung has developed an efficient business in smartphones and home appliances. Semiconductor production will form a closed chain of electronics production in Vietnam.”
In the first half of 2022, Samsung Vietnam’s export revenue was US$34.3 billion, up 18% from the same period last year. The group’s goal this year is to achieve an export turnover of US$69 billion, equivalent to 20.5% of the value of Vietnam’s merchandise exports last year (US$336.31 billion).