Lite-On to pump additional $320 million into subsidiaries in Vietnam

Lite-On to pump additional $320 million into subsidiaries in Vietnam

Taiwanese electronics group Lite-On Technology Corporation will inject an additional $320 million into two wholly owned subsidiaries in Vietnam to expand production capacity amid increasing demand for AI infrastructure.

The groundbreaking ceremony of Lite-On Vietnam Quang Ninh Phase in Song Khoai-Amata Halong (Photo: Baodautu.vn)

Lite-On Technology's Board of Directors approved cash capital injections of $210 million into Lite-On Technology Vietnam Co., Ltd., and $110 million into Lite-On Vietnam Co., Ltd., according to filings dated October 30 with the Taiwan Stock Exchange.

According to disclosures filed with Taiwan's stock exchange, the capital will be injected in phases, depending on actual demand, and would come from the group's own resources.

Following newly approved capital increases, Lite-On's cumulative investment in Lite-On Vietnam is expected to reach approximately $542.5 million, while its investment in Lite-On Technology Vietnam will total around $369 million, according to the company's disclosures.

These expansions are implemented in the context of AI infrastructure demand accelerating, with a higher contribution from high-value businesses driving revenue and profit growth.

“Global demand for AI computing and data centre infrastructure continues to grow, driving increased demand for high-end AI server power supplies, cloud computing products and power management systems. This momentum drove an 80 per cent on-year increase in cloud computing-related revenue for the first nine months of the year," Anson Chiu, president of Lite-On Technology, noted at its financial report for the third quarter, which was published on October 30.

"Lite-On continues to deepen its presence in high-value AI infrastructure businesses, with AI-related revenue now accounting for more than 30 per cent of total revenue this year. Looking ahead, we will focus on high-value opportunities in AIDC power management, liquid cooling and optical communications, leveraging technology innovation and system integration while accelerating critical technology development through strategic investments and M&A," he added.

Lite-On specialises in manufacturing printed circuit boards, printers, scanners, wi-fi modules, and electronic components in Vietnam.

Entering the country in 2013, Lite-On Vietnam specialises in semiconductor components and electronic parts manufacturing at Vietnam-Singapore Industrial Park (IP) in the northern port city of Haiphong. The company inaugurated its phase-two factory at the site in November 2022.

Meanwhile, the company is developing a major manufacturing facility at Song Khoai – Amata Halong IP in Quang Ninh, with a total planned investment of around $690 million and a site area of roughly 30 hectares.

VIR