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Vietnam Takes Center Stage as a Major Player in SpaceX’s Starlink Component Manufacturing

Vietnam emerges as key production hub for SpaceX's starlink components

Manufacturers providing parts for Elon Musk’s Starlink satellite internet are relocating their operations from Taiwan to Vietnam.

Wistron NeWeb Corporation (WNC), which supplies SpaceX, has started producing routers and networking devices for Starlink in Ha Nam Province, Vietnam. The company’s recent annual report highlighted its efforts to enhance global production in response to geopolitical challenges and changing customer needs.

Universal Microwave Technology, another SpaceX supplier known for satellite components, has also established a factory in Vietnam this year, according to company records. Moreover, they are developing a new facility in Thailand, aiming to address client concerns over geographic risks while boosting cooperation.

Taiwan is home to a flourishing satellite sector, comprising around 50 firms involved in producing ground equipment and sensitive components. The Taiwanese government estimates the industry’s annual production value exceeds 200 billion New Taiwan dollars (approximately $6.23 billion). SpaceX collaborates with around a dozen direct suppliers based in Taiwan.

Shenmao Technology, which supplies soldering products for circuit boards, indicated plans to invest $5 million to establish a production site in Vietnam.

In September, reports surfaced indicating that SpaceX may invest $1.5 billion in Vietnam, although specific details regarding the investment remained undisclosed.

SpaceX President Gwynne Shotwell announced that Starlink expects to achieve a significant milestone this week.

Sources indicate that supplier moves to Vietnam primarily stem from SpaceX’s directives.

Chin-Poon Industrial, another supplier connected to SpaceX, noted that new production orders were requested to be moved from Taiwan to Thailand due to geopolitical factors.

This ongoing transition of Starlink component production from Taiwan highlights a significant trend in the industry.

Ming-Kuen Lai, CEO of the Taiwanese construction firm Acter, reported that his company’s operations in Southeast Asia expanded by 50% last year, surpassing growth in its main markets of Taiwan and China.

Acter focuses on constructing electronics factories and clean rooms for well-known tech entities like Foxconn, Delta Electronics, Wistron, and ASE Technology.

Currently, Southeast Asia contributes a little over 10% of Acter’s revenue, yet Lai emphasizes the swift development occurring in Thailand, Vietnam, and Malaysia.

“Vietnam is witnessing a surge in electronics assembly, Thailand is seeing a rise in printed circuit board factories, and Malaysia is attracting semiconductor packaging operations,” he remarked.

Escalating geopolitical tensions, together with a focus on resilient supply chains, are prompting significant shifts across the tech industry.

After years of concentrated production in China and Taiwan, electronics manufacturers such as Foxconn, Quanta, and Wistron, along with major chip suppliers like TSMC and United Microelectronics Corporation (UMC), are rapidly moving to establish facilities in Southeast Asia, Japan, and even Europe.


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