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To: Gottfried who wrote (40803)	12/14/2000 11:21:45 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

VEIC to Build US$110m IC Plant Vietnam Electronics and Informatics Corp (VEIC), a state-owned monopoly consortium, is to build an IC assembly line costing US$110 million next year. "It is time to make such a decision to enter hardware development in Vietnam," Nguyen Ngoc Son, project manager of VEIC said. "It is really a battle to keep a grip on the booming PC market and stave off dominance of imported chips," he added. The chip factory is among 20 VEIC projects over the next 10 years which will cost US$232.5 million. "We will produce integrated chips, however, not only for PC, but also for other household electronic appliances such as TV, radio, radio cassette and VCR," Son said. The production line is also being aimed at the export market. "Our plant will export not less 30%, and not over 95% of total ICs," Son added. VEIC will use most of the investment capital to buy hi-tech equipment for IC, PCBA and PWB production, including chip mounting with high-speed, high-layer count, 14 layer (10-layer core and 4-layer buildup), high-density and apply build-up technology with SVH (Surface Via Hole) and BVH (Buried Via Hole). Son said VEIC has embraced advanced technology developments in smaller components by adopting chip mounting of 0.6mm x 0.3mm x 0.3mm. He added that technology imported from Japan would allow the new chip factory to meet diversified demands of customers - domestic as well as overseas. According to Son, the design capacity of the new plant will be 1 million products per month. In addition, the VEIC factory will introduce environmental activities such as using lead-free solder and halogen-free material. Analysts believe the VEIC factory will create an opportunity for PC local assembly liners and household appliances manufacturers due to its lower chip cost. Last year, Vietnam closed down 45 locally-made TV assembly lines. "It was very hard to buy chips and components," Son explained. The most promising factor, however, for the country's future computer chips and components market is the increase in demand. According to statistics, the demand for replacing and upgrading computers in Vietnam is rising sharply. Tran Thanh Luu , director of Viettronics Binh Hoa in Ho Chi Minh City said, "We are eager to buy ICs from the VEIC factory in the coming years with expectation of the cost being lower." Apparently before deciding on investing in the plant, like other chip makers, VEIC was successful in finding overseas markets. However, according to Luu, the production capacity of ICs and PCBs in Vietnam has yet to meet domestic demands. by David Tran, Ho Chi Minh City (December 2000 Issue, Nikkei Electronics Asia)