Samsung’s VN $2.5b expansion approved
Samsung’s VN $2.5b expansion approved
Samsung Display officially received an investment licence Friday for its US$2.5 billion expansion project in Bac Ninh Province’s Yen Phong Industrial Park.
The Government announced its principle approval for the expansion project, giving it the preferential treatment of a large-scale project.
Through the expansion, Samsung Display will officially increase its investment in Viet Nam to $6.5 billion. It is also the first billion dollar project in the country this year.
Samsung Display started construction of display panel production facilities in late 2014 on unused land at Samsung Electronics’ plant in the province, with initial investment of $1 billion. It began production in March 2015 and increased its investment to $4 billion.
The organic light-emitting diode (OLED) display modules produced in the province are used to supply Samsung Electronics’ manufacturing plants located in the provinces of Bac Ninh and Thai Nguyen.
Industry insiders said the move is in response to growing demand for smart phone display panels, the biggest growth segment in the display business, especially the smart phone segment.
They believe that the expansion is related to Apple’s plan to shift into active matrix OLED (AMOLED) displays, even without Samsung’s official confirmation.
Samsung is the only group in the world with the exclusive technologies and adequate capacity for AMOLED production. The South Korean firm holds up to 95 per cent of the global AMOLED display market share, with an average capacity of around 200 million products a year.
With the new investment, Samsung continues its role as the largest foreign investors in the country. The expansion also dispelled concerns that Samsung would halt investment plans in Viet Nam after its recent incidents, the Dau tu (Investment) Newspaper reported.
Samsung has committed to invest more than $17.3 billion in Viet Nam: including $6.5 billion Samsung Display, $9.5 billion Samsung Electronics Complex in Thai Nguyen, Bac Ninh ($2.5 billion) and HCM City ($2 billion).
In addition, the group also has the $1.2 billion Samsung Electro-Mechanics project in Thai Nguyen. — VNS
Box:
The 110kV transformer station in Yen Phong Industrial Park (IP) in the northern Bac Ninh Province is expected to become operational on February 27, said Electricity of Viet Nam (EVN).
EVN said the transformer station construction aims to meet the high quality and stable power demand of the Samsung Complex in the province as Samsung Display increases its investment.
The station started construction in October, with a total investment of VND132 billion. Its equipment has been provided by leading producers in the world such as Siemens, ABB and Emerson.
It has more outstanding functions than traditional models, thus maximizing costs while reducing the number of staff.
The station will ensure enough power for the Samsung Complex, as well as other businesses in the IP and neighbouring areas.
