The Vietnamese subsidiaries of Intel Corp. and Samsung Electronics Co. are about to finalize the epidemic prevention plan in Saigon high tech park in Ho Chi Minh City and prepare to fully resume the operation of Ho Chi Minh City factory by the end of November, which may help to alleviate the pressure on the global supply chain.
Le bich loan, director of Saigon high tech park authority, said that the park is helping tenants fully resume operation next month, and many tenants are currently operating at a rate of about 70%. She did not elaborate on the measures being taken by the park, especially how to pick up the workers who fled to their hometown to avoid the epidemic.
The media quoted loan as saying that the subsidiary of Nidec Sankyo Corp. in Ho Chi Minh City is also expected to fully resume operation in late November. Japan electric power industry association is a manufacturer of magnetic card readers and micro motors.
Saigon high tech park is the location of dozens of factories that produce parts or provide services for multinational corporations. In July this year, due to the rapid spread of COVID-19 in Vietnam, the local government ordered Samsung and other factories to stop work and submit an isolation plan.
Loan said that many companies operating in Saigon high tech Park lost about 20% of their export orders in July and August. In recent months, the surge of new crown cases in Vietnam has led to epidemic prevention restrictions. In some factory areas, the government requires on-site sleeping arrangements for workers, otherwise the factory will be closed.
Samsung closed three of its 16 factories in Saigon high tech park in July and cut the staff of sehc production base by more than half. Samsung Electronics has four production bases in Vietnam, of which the sehc factory in Ho Chi Minh City mainly produces electronic equipment, with the smallest scale. According to previous media reports, sehc’s revenue still reached US $5.7 billion last year, with a profit of about US $400 million. Located in Beining Province, Samsung also has two production bases – sev and SDV, which produce electronic equipment and displays respectively. Last year, the revenue scale was about US $18 billion.
Intel, which has a semiconductor testing and assembly plant in Saigon high tech park, arranged employees to spend the night at the plant to avoid stopping operations.
At present, as a key link in the tight supply chain, the shortage of chips is still fermenting, which continues to affect industries such as personal computers and automobiles. According to the latest data released by IDC, a market research institution, the global PC shipment in the third quarter increased by 3.9% year-on-year for the sixth consecutive quarter, but the growth rate was the slowest since the beginning of the epidemic. In particular, the U.S. PC market shrank for the first time since the epidemic, due to the shortage of parts and materials. IDC data show that PC shipments in the U.S. market fell 7.5% year-on-year in the third quarter.
In addition, the sales of Toyota, Honda and Nissan, the “three giants” of Japanese automobile manufacturing, all declined in China in September. The shortage of chips restricted the automobile production in the world’s largest automobile market.
Post time: Oct-26-2021