Foxconn Subsidiary Plans $80 Million Expansion in Vietnam for Chip Production

Foxconn's packaging subsidiary, Foxsem, is set to invest $80 million to increase its chip manufacturing capacity in Vietnam. Foxsem will contribute $20 million, with the remaining $60 million to be financed through loans, to expand its production capabilities at the Bắc Giang facility.

The company aims to finish environmental assessments and secure construction permits by the end of the year, with an anticipated project completion in May 2026, trial production in June 2026, and full-scale mass production by December 2026. The facility will focus on producing Co-Packaged Optics (CPO) components, and once the expansion is complete, the annual production capacity is expected to reach 4.5 million units, all destined for export to the United States, the European Union, and Japan.

Foxconn entered Vietnam in 2007 and has since invested over $3.2 billion, establishing several production sites in Bắc Ninh and Bắc Giang provinces. These factories were primarily constructed to meet orders from American clients, as stated by the company's former chairman. Currently, Jiang Shangyi, the former semiconductor strategy chief at Foxconn Technology, holds the position of chairman at Foxsem.

Foxsem has been researching SiP technology for optical transceivers for many years and has produced CPO device samples. The company is now working on developing CPO module products, optimizing manufacturing processes, and mass-producing CPO modules with high-speed transmission rates of 25.6T/51.2T. By 2025, this technology is anticipated to be widely integrated into the supply chain of AI servers.