Samsung Display plans to increase manufacturing capacity in Vietnam by investing a further three trillion won ($2.51 billion) into the country.
Local news agency Yonhap reports that the tech giant's display arm currently produces between 40 and 50 percent of its smartphone ranges at two factories in Vietnam, located in the Bac Ninh province, northern Vietnam, and Thai Nguyen.
However, an increase in investment will help Samsung expand display-based product lines and cater for increased demand. At CES 2017, Samsung revealed a new range of quantum dot (QD) premium television displays -- the Q9, Q8, and Q7 -- which boast slimmer designs and enhanced picture quality.
In 2015, Samsung began constructing a new consumer electronics production facility in Ho Chi Mihn which manufactures devices including televisions, air conditioners, and washing machines. Operations began earlier this year and Samsung is reportedly planning to shift some production away from other facilities in countries such as Malaysia and South Korea to this new factory.
Yonhap says that in return for increasing Vietnamese investment from $1.4 billion to $2 billion by 2020, the local Ho Chi Minh government will reward the electronics giant with additional tax breaks.
Citing unnamed sources, the publication says that Samsung and Vietnamese officials are currently in talks concerning the fresh investment.
While Samsung would not comment on the report, a Reuters source said the display maker is concerning additional investment in Vietnam, but declined to comment further.
Despite the Galaxy Note 7 disaster which ended up in a safety recall of the product as a fire hazard, Samsung still expects its highest profit in three years of 9.2 trillion won ($7.7 billion) for the fourth quarter of 2016 due to the rising success of its chip business.
Samsung is not the only manufacturer investing in Vietnam. South Korea's Seoul Semiconductor Co. has won a license to build a new $300 million semiconductor facility in the north of the country, while LED manufacturer Lumens Co., based in Seoul, hopes to begin manufacturing operations in the south later this year.
Samsung to invest $150m into emerging tech startups globally
Samsung will be investing $150 million into emerging tech startups, the company announced on Wednesday.
The Samsung NEXT Fund will be targeting pre-seed to Series B investments, with a focus on virtual reality, artificial intelligence, the Internet of Things, and other "new frontier technologies". In addition to capital, the fund will provide domain expertise and access to other unspecified resources.
Samsung NEXT has not disclosed the amount startups receive at various stages of their lifecycle, however it has invested in 10 companies thus far: Converge Industries, Dashbot, Entry Point VR, Filament, Intezer, LiquidSky, Otto Radio, 2Sens, SafeDK, and Virtru.
David Eun, founder and president of Samsung NEXT, the division leading the fund, said the company envisions software and services becoming "a core part of Samsung Electronics' DNA" and that startups are key to achieving this.
Brendon Kim, VP and managing director of Samsung NEXT, added that the fund increases the company's access to ideas, products, and talent that could add value to Samsung's ecosystem.
In September, Samsung NEXT, which was formerly known as the Samsung Global Innovation Center, launched its fifth office in Tel Aviv, after establishing offices in Mountain View, New York, San Francisco, and Korea. The company will be expanding into additional locations in 2017.
Samsung has also been strengthening its foothold in the automotive industry, announcing its plans to acquire US auto parts maker Harman International Industries for $8 billion in cash in November 2016, marking the biggest deal in the company's history. Harman and Samsung said the former's experience and clout in the automotive industry combined with latter's experience in mobility, semiconductors, user experience, displays, and global distribution channels will create significant growth opportunities.
Park Jong-hwan, head of Samsung's automotive business, stressed that the company's purchase of Harman was part of its strategy to become a tier-1 supplier in the smart car age to come, rather than become an automobile maker. The South Korean tech giant built automobiles during the '90s but sold the business due to the Asian Financial Crisis.
LG Display plans to build a new display module assembly plant in Vietnam
South Korea's LG Display announces that it plans to build a new display module assembly plant in Vietnam, with the aim to start production in the second half of 2017.
LG Display said the plant will be located in Hai Pong, but he firm did not disclose the investment scale.
It is reported that LG Display supplies smartphone panels to Apple Inc and LG Electronics. The company said the comparatively lower salaries in Vietnam are competitive, and the country is adjacent to China, which were the key reasons for the company to decide to build the plant in the country.