Samsung to invest additional US$850 mln in Vietnamese subsidiary
VGP - Electronics giant Samsung of the Republic of Korea’s recent board meeting has approved the spending of some US$850 million for its unit in Viet Nam to manufacture flip-chip ball grid arrays (FC-BGA), according to KBS News.
FC-BGA is a highly-integrated package board used to connect a high-integration semiconductor chip to a main board.
The company will spend the investment in phases until 2023 to build the new FC-BGA production line.
According to the plan, the Vietnamese subsidiary will focus on producing FC-BGA while Samsung's factories in Suwon City (Gyeonggi) and Busan City will specialize in technology development and high-end products.
Samsung Viet Nam is currently operating six factories located in Bac Ninh, Thai Nguyen and Ho Chi Minh City, along with a research and development (R&D) center in Ha Noi and a legal entity that handle sales. Samsung has officially invested in Viet Nam since 2008, with the total amount of capital reaching more than US$ 17.7 billion.
At the moment, Samsung Viet Nam is extending its role beyond a vital global manufacturing stronghold in Viet Nam and building Samsung’s own R&D Center in Ha Noi, with the scale of investments reaching US$220 million, in order to raise the mid-term and long-term research and development capabilities.
Currently, regarding the construction progress of the R&D Center, the rate of completion is more than 50 percent, and the center is expected to be inaugurated at the end of 2022.
When this R&D Center begins its operations, the number of Vietnamese engineers we employ will rise from 2,100 to 3,000.
By Hoang Ha
