Samsung to spend $1.2 bil. on Vietnam chip plant
Samsung to spend $1.2 bil. on Vietnam chip plant
South Korea’s Samsung Electro-Mechanics will start work next month on a $1.2 billion chip and electronic components plant in the northern province of Thai Nguyen.
Necessary procedures for the project at the Samsung Electronics Vietnam Thai Nguyen (SEVT) hi-tech complex in Yen Binh 1 Industrial Park have been completed, according to a source from the management of industrial parks in Thai Nguyen.
When in place, it will supply the SEVT complex where Samsung gadgets like mobile phones, smart phones and tablets are made.
Seung Mo Ryu, general director of Samsung Electro-Mechanics, who had visited Thai Nguyen and worked with provincial leaders on the project in the middle of last month, said the plant’s groundbreaking ceremony was slated for next month and that it would be up and running in August 2014.
The chip and electronic components facility will be the biggest of Samsung Electro-Mechanics outside South Korea, Thai Nguyen newspaper said in a report on its website at baothainguyen.org.vn.
Samsung Electro-Mechanics specializes in making integrated technology products for electronic devices. The company now has plants in China, Thailand and the Philippines among others, with the Thai Nguyen plant being Samsung’s ninth facility and second project in the province.
In encouraging Samsung’s investment plan in Vietnam, Thai Nguyen Province’s leaders have promised to offer favorable conditions for Samsung to put the plant into operation as scheduled.
Samsung Electronics Vietnam Thai Nguyen in March 2013 broke ground for the hi-tech complex at a total cost of US$2 billion. The mobile phone manufacturing and assembly and hi-tech product plant covering some 100 hectares is due to be commissioned at the end of this year.
These two giant facilities are seen as the major manufacturing facilities of Samsung in Vietnam. Member companies of the group also plan to develop plants making electrical and electronic components and mobile and telecom devices using high technologies, with thousands of jobs to be created and around US$20 billion worth of goods to be exported annually.
With the new project, Samsung’s investment commitments to the two production bases in the country amount to a combined US$4.7 billion and Vietnam will become Samsung’s smart phones and tablets manufacturing base in the world.
The first plant of Samsung in Vietnam is situated in the northern province of Bac Ninh with total capital of around US$1.5 billion. It launched its first products in April 2009. Samsung Bac Ninh turns out 13-15 million tons of products per month, with over 90% of them for export. The firm’s exports brought home roughly US$11 billion in the year’s first half, with high-end smart phones like Galaxy SII and Galaxy SIII and Note II made by it.
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