Vietnam wants some of Samsung's chip manufacturing action

Terminal updated: October 21st, 2020 at 18:05 UTC+01:00

Vietnam is ramping up its efforts to get Samsung to invest in new chipmaking infrastructure in the state. The endeavor, which started almost a year ago, connected this week in Hanoi, where Samsung heir credible Lee Jae-yong met with Vietnam Prime number Minister Nguyen Xuan Phuc. The country's leader used the occasion to directly enquire for a new semiconductor plant, local media reports.

This plough of events is far from surprising; in fact, it'due south precisely what industry watchers expected as shortly as Samsung confirmed its chief is scheduled to visit the Far Eastern country this week. Which still doesn't guarantee that Samsung indeed has large plans for Vietnam.

Samsung'south new Vietnam investment is a question of "when", not "if"

Samsung already has a large manufacturing presence in Vietnam. The company is currently constructing a new smartphone factory and a separate R&D center in Hanoi. Lee intends to audit the land of both construction projects during his visit. Samsung'due south mobile chief Roh Tae-moon and brandish head Lee Dong-hoon are function of his Vietnam entourage, equally well, insiders report.

It'southward not surprising that Vietnam wants a piece of the semiconductor manufacturing action. Vietnam is already where most Samsung phones are made. Samsung'southward semiconductor manufacturing operations are largely limited to S Korea. Given that information technology'south a major thespian in this marketplace, it likely wants to keep all resources, technical and otherwise, at home. Yet, Vietnam seems to be counting on its long-established relationship with Samsung to push for a chip plant every bit well.

Ultimately, this development confirms that Vietnam'south PM reiterated the plea made belatedly last year during a state visit to Seoul. Lee originally avoided committing to a new semiconductor plant in Vietnam only promised he volition visit the conglomerate's existing local facilities and assess whether any major investment opportunities exist. That'south likely a big role of the reason for his latest business trip. Information technology'due south unclear whether investment talks progressed past that point during today'south meeting between Lee and Nguyen, all the same.