Coherent ramps up Vietnam investment with $127 million Dong Nai factory

Coherent ramps up Vietnam investment with $127 million Dong Nai factory

Coherent has taken a major step in its global growth strategy with the launch of a new high-tech manufacturing facility in southern Vietnam.

The US-based semiconductor materials and components giant inaugurated its $127 million plant at Nhon Trach Industrial Park in Dong Nai province on July 28. The facility marks a key investment in the region and will produce precision-engineered materials and photonics components used in a wide range of applications, from smartphones and electric vehicles to advanced medical devices.

Speaking at the opening ceremony, Deputy Prime Minister Nguyen Chi Dung hailed the opening as a pivotal step in Coherent Corporation’s global technology development strategy. He also underscored the move as compelling evidence of the growing confidence that leading global tech firms are placing in Vietnam’s investment environment and development potential.

DPM Dung and Coherent executive vice president Gary Kapusta (centre left) at the plant’s opening in Dong Nai on July 28. Photo: VGP.

Deputy Prime Minister Dung highlighted the significance of the Nhon Trach facility’s inauguration, noting that it coincides with the 30^th anniversary of Vietnam-US diplomatic relations.

"Vietnam is actively developing key strategic industries, including semiconductors. Today’s event is a concrete step in implementing the Joint Statement on upgrading Vietnam-US relations to a Comprehensive Strategic Partnership. Coherent is expected to make a meaningful contribution to Vietnam’s emergence as a key link and future hub in the global semiconductor supply chain," said DPM Dung.

He also acknowledged the proactive role played by the Ministry of Finance and the National Innovation Centre in fostering a robust ecosystem for the semiconductor and high-tech industries in Vietnam. The Coherent factory, he said, is a fitting reward for Vietnam’s determined efforts to attract investment into strategic technology sectors.

Coherent Corporation was founded in 1971, originally focusing on materials and optics for industrial lasers. With a long-standing legacy as a vertically integrated manufacturer, Coherent boasts world-class innovation capabilities, products, and clients. Its global footprint spans 130 locations across 24 countries.

Coherent entered Vietnam in 2005, establishing its first factory at VSIP1 Industrial Park in former Binh Duong province, specialising in thermoelectric coolers, technical ceramics, wafers, advanced optics, and laser services. In the late 2010s, Coherent expanded to the north, and in 2019 inaugurated a facility at Yen Phong Industrial Park (IP) in Bac Ninh province.

In 2023, Coherent met with Dong Nai provincial leaders to propose three high-tech projects at Nhon Trach 1 & 2 IPs, including silicon carbide, semiconductor manufacturing, advanced optics, and the M-Cubed project for measurement, testing, and semiconductor component production.

With nearly $1 billion in registered capital, the projects are expected to generate more than $1.2 billion annually. In 2024, Dong Nai authorities issued investment certificates for all three projects.

Gan YC, director of Nhon Trach 1 Factory, spoke about building a world-class manufacturing and innovation centre that reflects the future of Coherent Corporation.

"This new facility is designed with scalability, flexibility, and sustainability at its core, to meet the rising global demand for advanced technologies. It plays a pivotal role in enhancing our capabilities in silicon carbide and optics, both essential to the transformation of industrial systems, high-speed communications, and data centre infrastructure. Equipped with smart manufacturing systems and a high-quality local workforce, the factory strengthens our supply chain, reduces lead times, and brings us closer to key markets across Asia. This is not merely a factor, it is a strategic platform for innovation, growth, and long-term competitiveness," said YC.

Meanwhile, Nguyen Minh Man, general director of Coherent Vietnam (Dong Nai) believes the inauguration of Coherent Corporation’s new factory in Vietnam marks a significant step forward in its global growth strategy.

"It reinforces our long-term commitment to Southeast Asia, a vital region for advanced manufacturing, technological innovation, and talent development," said Man.

"This new site is more than just a capacity expansion, it is part of our vision to build regional centres of excellence that integrate advanced capabilities, foster cross-functional collaboration, and support the company’s broader transformation. At the same time, it allows us to effectively leverage Vietnam’s dynamic workforce and rapidly evolving industrial ecosystem, key factors in driving sustained innovation and long-term value creation," Man added.

Vietnam is entering a transformative phase amid the rapid advance of the Fourth Industrial Revolution, characterised by groundbreaking progress in AI, semiconductors, biotechnology, renewable energy, quantum technology, and big data, all of which are reshaping global value chains and fundamentally altering economic structures.

The country has made it a national priority to harness these opportunities through rapid, knowledge-based, science- and technology-driven growth, with a focus on innovation and digital transformation.

In terms of foreign investment, Vietnam is prioritising selective and high-quality projects in areas such as high technology, semiconductors, AI, research and development, digital and green transformation, and clean energy, all underpinned by comprehensive infrastructure development.

VIR