Samsung to set up $1-bn module assembly plant in Vietnam
03 Jul 2014
A subsidiary of South Korea's Samsung Electronics Co Ltd said today it had received regulatory approval for making investment of $1 billion in a display module assembly plant in Vietnam.
Reuters quoted a Samsung Display spokesmanm as saying the company planned to start production at the plant, to be set up in Bac Ninh province, sometime in 2015. He said the type of displays to be produced at the facility as also the exact production capacity had yet to be decided.
The facility would be the company's first production unit in the country.
Samsung Electronics had been increasing its production capacity in Vietnam in a bid to lower production costs, as competition intensifies in the smartphone market.
Samsung is facing tough competition from Chinese rivals like Huawei Technologies Co Ltd and Lenovo Group Ltd in mid-to-low tier products.
According to Samsung Display, the Vietnam facility would improve its ability to supply displays to Samsung Electronics, which already made mobile phones in the country.
According to a June regulatory filing, Samsung Electronics owned 84.8 per cent of unlisted Samsung Display.