Asia Minute: More Taiwanese companies are shifting production from China to Vietnam
Where is your favorite electronic gadget assembled? For many years, the answer to that question may have been China. But that’s continuing to shift, in many cases, to Southeast Asia.
Over the past few weeks, there have been several quiet announcements of multi-million dollar Taiwanese technology investments in Vietnam.
In the recent past, much of that capital would have been more likely to wind up in China.
Some of the key movers are Taiwanese companies with links to American and Japanese brand names.
Taiwan's Quanta Computer is a major assembler of Apple's MacBook computers.
Its corporate board recently approved a plan to create a new Vietnamese subsidiary for $50 million to “diversify its production bases.”
The Taipei Times quoted a company official as saying “geopolitical tensions” were a factor in looking for “production diversification outside China.”
Other companies are buying their way into the market with direct acquisitions.
Last month, Taiwanese electronics manufacturer Tripod Technology announced the completion of a deal to buy FICT Vietnam Company — which makes circuit boards and assembles products for the Japanese company Fujitsu.
Investor Vietnam reports Fujitsu put up $200 million to finance the move.
Nikkei Asia reported the number of Taiwanese projects funded by direct investment grew 87% in the first quarter of 2023, compared to a year earlier.