Samsung announces $3b smartphone factory in Vietnam
Samsung has announced plans to invest up to $3 billion to develop a new smartphone factory in Vietnam. The facility will operate alongside Samsung’s existing $2 billion plant in the country, which began production in March 2014.
Samsung is not the only tech firm with manufacturing facilities in the country. Intel, LG, Panasonic and Microsoft have all opened plants in recent years, marking a shift away from China.
Experts say the combination of tax breaks and a relatively cheap workforce make the country an appealing base when compared with its northern neighbor. Vietnam's government had previously said Samsung's smartphone assembly lines would not need to pay corporate taxes for four years, and only half the normal rate for the following nine years should the firm meet the terms set out in its investment applications.
Vietnam positioning itself as a leading smartphone manufacturer
Vietnam is becoming somewhat of a smartphone giant. In the first 10 months of the year the country exported $19.2bn worth of mobile telephones and accessories, which is 8 percent more than for the same period in 2013, according to Vietnam's General Statistics Office.
The sector currently accounts for about 16 percent of the nation's total exports, which makes it bigger than the textile and garment industry.
According to reports, Samsung will build its new smartphone factory close to its existing plant in the north-eastern province of Thai Nguyen, which currently employs in the region of 16,000 workers.
The announcement comes a month after Samsung Electronics announced plans to build a $560m factory in Ho Chi Minh City, where it will make televisions, washing machines and air conditioners.
Other divisions from the South Korean company are also expanding in the country, including Samsung Display and Samsung Electro-Mechanics. According to the Yonhap news agency, the conglomerate as a whole has invested about $11bn to date in Vietnam.
Lion Electric to Construct US EV Manufacturing Facility
Who is Lion Electric?
Founded in 2008, is an innovative manufacturer of all-electric, zero-emissions, medium and heavy-duty urban vehicles. Lion Electric designs, manufactures, and assembles all components for its vehicles that have unique features specifically adapted to the users and their needs. “We believe that transitioning to all-electric vehicles will lead to major improvements in our society, environment and overall quality of life,” believes Lion Electric.
Lion Electric’s new Illinois Manufacturing Facility
Just two months after announcing plans to construct a battery manufacturing plant and innovation centre in Quebec, Lion Electric is expanding its locations further, selecting Joliet, Illinois for its new manufacturing facility in the US.
The new facility is said to “represent the largest dedicated production site for zero-emission medium and heavy-duty vehicles in the US,” as well as being the company’s biggest footprint in the market. The new facility will give Lion Electric the capacity to meet increasing demand for ‘Made in America’ zero-emission vehicles and bring production closer to customers.
It is expected that the first vehicles off the production line will be in the second half of 2022.
“Lion’s historic investment to bring its largest production facility to Illinois represents not only a win for our communities, but a strong step forward in our work to expand clean energy alternatives and the jobs they bring to our communities,” said Gov. J.B. Pritzker.
“The new Joliet facility will put Illinois at the forefront of a national movement to transition to zero-emission vehicle use, advancing our own goals of putting one million of these cars on the road by 2030. In Illinois, we know that a clean energy economy is about more than just vehicles – it’s about healthier communities and jobs for those who live there. We are excited to welcome Lion to the Land of Lincoln and look forward to their future success here.”
Lion Electric’s Agreement with the Government of Illinois
Over the next three years, Lion Electric will invest a minimum of US$70mn into Illinois. The new facility - totalling 900,000 square feet - is expected to create a minimum of 745 clean energy direct jobs in the next three years, and have an annual production capacity of up to 20,000 all electric buses and trucks.
Scaling electric bus production and decarbonising freight and transportation
As the US moves to electrifying its school buses, the additional production capacity at the facility will help Lion Electric to scale its electric bus production, as well as produce an increased volume of heavy-duty zero-emission trucks to help governments and operators in the US further the decarbonisation of freight and transportation fleets.
“Lion is the leader in electric school buses and has always been dedicated to the U.S. market, and our commitment to be close to our customers is one of the core values we have as a company. This significant expansion into the U.S. market will not only allow us to drastically increase our overall manufacturing capacity of electric trucks and buses but to also better serve our customers, while adding critical clean manufacturing jobs that will form the backbone of the green economy,” said Marc Bedard, CEO and Founder of Lion.
“I also want to acknowledge the crucial role that P33 and Intersect Illinois, civic groups committed to developing developing a long-term roadmap for the local tech industry, played in connecting Lion with the Chicago area’s business and civic community to help further commercial traction, as well as engagement with key workforce and supplier partners.”