Two new faces
Two Japanese IT companies
have joined a US$9.38 million
chip making plant in the Tan
Thuan Export Processing Zone
(EPZ) in HCM City.
The plant is called Mtex
Vietnam under the name of its
so-called parent company,
Mtex Matsumura, which has
taken a big stake of 83.3%. The
other partner, Shinjio Elemecs,
holds 16.7%. The plant has
officially been in operation
since July, a source
from the Tan Thuan EPZ said. The source also said that it is just the
first phase of the overall plan that will allow Mtex Vietnam Company
(MVC) to manufacture about 40 million semiconductor ICs per month by
2004.
The plant is located on an area of 9,186 square meters. "We make
various kinds of chips for PCs, micro-processor equipment and
electronic games," Eguchi Masaharu, general director cum board
chairman of Mtex Vietnam, remarked.
He also said the Mtex Vietnam factory can manufacture automotive
chips to meet the increasing demand of automobile assembly lines in
Vietnam.
According to him, Mtex Vietnam will raise its capacity to 15 million ICs
per month by next year compared with an initial volume of 3 million ICs
a month this year. "We believe that, with our hi-tech equipment
imported from Japan, Mtex Vietnam will attain a maximum capacity of
40 million ICs per month by 2004," Masaharu added.
Actually, nearly 90% of Mtex Vietnam's products are exported to Japan
and Thailand.
There are 330 well-trained Vietnamese employees who work together
with nine Japanese engineers and technicians. "Our local staff will be
400 by 2004," Masaharu proclaimed. "I think our local staff, especially
the engineers, are skillful and hard-working enough to run such a
hi-tech factory. They are very capable of meeting our demands."
Yarimizu, CEO of Mtex Matsumura Japan, said, "We received very
strong support from the Vietnamese Government as well as from one
of Japan's largest semi conductor makers, Hitachi Corporation. That is
why we believe in our future success in Vietnam. We will make it a firm
production base in Southeast Asia."
Mtex entered Vietnam in 1996 and started making automobile
components for export to Japan two years later. Last year, it became a
supplier of Nissan and Toyota.
Meanwhile, another chip factory of the Saigon Investment Group is
ready to start this month as planned.
Saigon Investment Group Limited (SIG), a U.S.-based totally
foreign-owned company, received a license to manufacture
semiconductor wafers in My Tho Industrial Zone, Tien Giang Province,
70km southwest of HCM City.
"We invested a total amount of US$30 million to build a factory
capable of manufacturing 120,000 wafers per year or 10,000 wafers a
month, using a 24-hour working schedule," SIG President and CEO
Gene Schecher told the press in HCM City. "However, during the first
year, the factory will be able to produce between 2,000-3,000 wafers a
month only," he revealed. The estimated selling price per wafer is
US$500.
"I think the project will help attract other related industries with an
ultimate objective of creating a high technology electronic industry
infrastructure in Vietnam. In short, we can bring other companies with
our project," Gene Schecher said.
He also said it is a good time to invest.
The bilateral trade agreement (BTA), which has been passed by both
governments of the U.S. and Vietnam, created good conditions for SIG
to set up its wafer factory in Vietnam. "Our products will enjoy very low
tariffs on exports to the U.S. due to the BTA," Gene Schecher said.
SIG's products would focus on a niche market -specific subject
oriented application products. It requires a smaller investment and
shorter time to build, has remarkable profits and requires a more
suitable small-scale level of infrastructure.
"Our My Tho factory manufactures analog circuits. We are able to use
facilities and equipment that are much lower in cost yet of older
technology," Gene observed.
The wafer factory employs 100 workers, 20-25 of them are electronic
engineers.
SIG sent eight Vietnamese engineers to the U.S. for training.
Nguyen Xuan Chuan, Deputy Minister of Industry of Vietnam, said those
who invest in the chip industry would enjoy a tax-exempted three year
priority.
Regardless of its slow start, industrial analysts observed, Vietnam's IT
industry will develop to become a production base for Southeast Asia
due to two main reasons: cheap labor and stable security.
By Khac Binh - The Saigon Times Weekly - August 24, 2002.
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