Introduction
In a strategic move to diversify its global operations, Foxconn is committing an $80 million invest to expand its semiconductor manufacturing footprint in Vietnam.
This ambitious project will take shape in Bac Giang Province through Foxconn’s subsidiary, Shunsin Vietnam Technology Co., Ltd., aiming to enhance chip production capabilities and meet the growing demand for semiconductors across the U.S., EU, and Japan.
The project aligns with Foxconn’s shift from China to Vietnam as a preferred manufacturing base, capitalizing on the region’s favorable business environment and skilled workforce.
Key Highlights
Investment Size and Funding Sources: Foxconn to Invest $80 Million project will include $20 million directly from Shunsin and an additional $60 million sourced through loans and fundraising.
Manufacturing Focus: The facility will primarily produce integrated circuit boards with a projected annual capacity of 4.5 million units.
Global Export Markets: All output will be directed to international markets, including the U.S., EU, and Japan.
Timeline and Operations: Construction and equipment installation are expected to continue through May 2026, with trial operations planned for June 2026 and full-scale operations by December 2026.
Job Creation and Automation: The facility is projected to employ approximately 1,450 workers, featuring a highly automated production system to ensure safety and efficiency.
Overview of the Project
Shunsin, a wholly-owned Foxconn subsidiary, has submitted an Environmental Impact Assessment Report to secure the necessary permits for this investment.
The project will be financed with $20 million directly from Shunsin and $60 million through loans and external fundraising.
Manufacturing Goals and Capacity
The new facility will be located in the Quang Chau Industrial Park. It aims to manufacture integrated circuit (IC) boards with a capacity of 4.5 million units per year.
These ICs, or chips, are critical components in various electronic devices. They consist of essential semiconductor elements like transistors and resistors, performing vital functions across industries.
Foxconn’s expansion aligns with increasing demand for chips from technology companies. By targeting markets in the United States, Europe, and Japan, the company seeks to diversify its supply chains and respond to client needs effectively.
Project Timeline and Construction Details
Foxconn plans to expedite the project timeline. The company aims to secure construction permits by December 2024.
Construction and equipment installation will extend until May 2026. The facility is set to initiate trial production in June 2026, with full operations commencing by December 2026.
The project will occupy over 44,000 square meters, showcasing Foxconn’s long-term commitment to manufacturing in Vietnam.
Advanced Production Technology and Automation
The new plant will feature advanced manufacturing technologies. Foxconn intends to implement a “closed production system” similar to its existing facilities in China.
High levels of automation will enhance operational stability and productivity while ensuring employee safety.
This approach addresses challenges such as labor shortages and aims for consistent, high-quality production outputs.
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Economic Impact and Workforce Requirements
At full production capacity, the project will create around 1,450 jobs. This includes positions for 35 foreign experts.
The facility will focus on specialized tasks due to its automated setup. This strategy will maximize output while maintaining safety and efficiency standards.
Foxconn’s Broader Vietnam Expansion
Manufacturing Legacy in Vietnam
Foxconn’s history in Vietnam dates back to March 2007. The company has established factories in Bac Ninh and Bac Giang provinces.
These facilities produce various products, including consumer electronics and semiconductor devices. A significant investment in the region includes the Fukang Technology project, valued at over VND12.5 trillion ($494 million USD).
This investment further strengthens Foxconn’s presence in Vietnam’s tech ecosystem.
Shifting Strategy Amid Geopolitical Tensions
Foxconn’s decision to expand in Vietnam comes amid rising trade tensions between the U.S. and China.
The company is diversifying its operations to mitigate risks associated with reliance on Chinese production. Vietnam offers advantages such as proximity to major markets, a skilled workforce, and a favorable regulatory environment.
This strategy allows Foxconn to meet increased client demand while reducing dependence on China.
Environmental Compliance and Sustainability Initiatives
As part of its commitment to sustainability, Shunsin has applied for permits to install an emissions treatment system. This initiative ensures compliance with Vietnam’s environmental regulations.
By managing waste from semiconductor production, Foxconn aims to minimize its environmental impact. This commitment positions Foxconn as a responsible corporate entity in Vietnam’s evolving tech sector.
Conclusion
Foxconn $80 million invest in Bac Giang Province underscores its commitment to Vietnam as a key player in the global semiconductor manufacturing landscape.
By focusing on producing integrated circuits for export, Foxconn is contributing to Vietnam’s growing reputation as a technology manufacturing powerhouse in Southeast Asia.
As Foxconn shifts its operations away from China, this project represents a vital step in creating resilient, geographically diversified supply chains to meet global semiconductor demands.
With trial operations set for mid-2026, this expansion not only bolsters Vietnam’s tech industry but also aligns with broader trends of localization and diversification in global manufacturing.
Foxconn’s investment positions it to lead in Vietnam’s burgeoning semiconductor sector, reinforcing its status as a global electronics manufacturing leader.
