Manufacturing deals bring stronger supply chains closer

Manufacturing deals bring stronger supply chains closer

Supply chain diversification is fuelling mergers and acquisitions in the manufacturing and industrial sector as companies look to acquire Vietnamese-based assets.

In mid-November, Panjit International, a Taiwan-listed semiconductor company, announced the acquisition of a 95 per cent equity stake in Torex Vietnam Semiconductor, a subsidiary of Torex Semiconductor. The deal is part of Panjit’s strategy to solidify its global semiconductor manufacturing footprint and advance its integrated circuit (IC) business.

Located in Vietnam-Singapore Industrial Park II in Binh Duong which is now part of Ho Chi Minh City, Torex Vietnam primarily engages in semiconductor packaging and testing, including IC packaging and testing operations. Following the deal, the company will optimise production capacity in line with Panjit’s strategic roadmap, including the introduction of automotive-grade power discrete device production at the site, to maximise resource integration and technical synergy.

In October, OCI Holdings, a South Korean energy and chemical conglomerate, through a subsidiary of OCI TerraSus, acquired 65 per cent of Elite Solar Power Wafer, a solar wafer manufacturing plant currently under construction in Vietnam.

The venture has an initial capacity of 2.7GW and a total investment of $120 million, of which the OCI equity contribution amounts to approximately $78 million. The plant can be expanded to 5.4GW within six months with an additional $40 million investment, potentially more than doubling its revenue in the near future.

Woo Hyun Lee, chairman of OCI Holdings, said, “This strategic investment brings us closer to building a supply chain that facilitates US exports. We will continue to strengthen our presence in the global solar market by fostering partnerships with local companies in Southeast Asia.”

The previous month, Vina CNS, a South Korea-invested company operating in industrial, engineering, and household plastic manufacturing, announced plans to issue common shares to raise approximately $23 million. The transaction involves participation from existing shareholder Fine M-Tec, a South Korean company specialising in IT and automotive components and modules.

Also in September, the International Finance Corporation announced plans to invest up to $38 million in quasi-equity in Dai Dung Metallic Manufacture Construction and Trade Corporation, a steel structure company in Vietnam. The investment will support Dai Dung’s $152 million venture, which includes building two new factories in Ho Chi Minh City and Thanh Hoa province.

Matthew Lourey, chairman of Alitium, said Vietnam’s manufacturing and industrial sector continues to attract strong merger and acquisition (M&A) activity despite global economic uncertainty, underpinned by Vietnam’s economic structural advantages.

“Vietnam remains a key beneficiary of global supply chain diversification as manufacturers seek alternatives beyond China,” Lourey said. “Its location, workforce, and extensive free trade agreements have positioned the country as a stable destination for foreign capital. This has translated into sustained investor appetite for acquiring established assets rather than necessarily pursuing riskier greenfield projects.”

Recent export performance has further reinforced confidence where shipments to advanced markets, and in particular the US, have expanded this year, reflecting Vietnam’s deeper integration into global production networks. Strong demand for electronics, machinery, and consumer goods has boosted the financial position of manufacturers, resulting in some attractive acquisition targets, and thereby offering investors scalability and resilience.

“Foreign dealmakers are focusing on sectors aligned with global technology and sustainability trends, with semiconductors a clear priority, but also with interest in mid-stream manufacturing,” Lourey added. “Renewable energy equipment, such as solar wafers, battery components, and other green technologies, is also drawing attention, supported by global decarbonisation goals and Vietnam’s own clean-energy ambitions.”

According to B&Company, industrial and energy-related M&A activity in 2025 remained solid, reflecting Vietnam’s continued integration into regional production networks and growing investor interest in manufacturing assets. The country’s position as a key alternative to China in global supply chain restructuring has driven steady inflows of foreign direct investment, particularly from Japan, South Korea, and Singapore. This movement has encouraged consolidation in supporting industries such as logistics, components, and energy supply.

VIR