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Samsung Working To Develop Its Vietnamese Supply Chain Networks

Samsung Working To Develop Its Vietnamese Supply Chain Networks

According to Shim Won Hwan, Samsung Vietnam’s CEO, Samsung is scouting for local companies to join its consulting programmes in order to enhance the company’s supply chain networks. This is a programme that the company had previously collaborated with the Ministry of Industry and Trade (MoIT), government agencies as well as local associations in order to source for qualified local companies that would be able to join.

In comparison with the localisation rate of 25 percent in 2014, Samsung’s current rate has increased to 58 percent this year and the number of local companies that rank as Samsung Vietnam’s tier-1 vendors have increased from 4 in 2014 to 35 in 2018 and this number is expected to reach 50 by 2020.

In fact, over the past ten years, Samsung has invested a upwards of US$17 billion in Vietnam and employed 160,000 locals. In 2017, Vietnam’s export turnover reached US$214 billion, of which Samsung alone contributed over US$54 billion to that figure. Additionally, the company’s four subsidiaries in Vietnam have a combined revenue of US$20.5 billion and a profit of US$2.08 billion in the first quarter this year alone and the same figures have experienced a 50 percent year-on-year increase, according to the company’s quarterly financial statements.

50 percent of Samsung’s smartphones and tablets are now manufactured in Vietnam and exported to 128 countries and territories, including the US, Europe, Russia and Southeast Asia. And since April 2018, Samsung has worked with the MoIT to provide training courses to 200 Vietnamese consultants so that they would be better able to advise local companies on how productivity can be improved and this will in turn help to develop Vietnam’s support industry.

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Apple, The Best Positioned To Bring High Volume Consumer MicroLEDs To Market

Apple, The Best Positioned To Bring High Volume Consumer MicroLEDs To Market

FRANCEDr. Eric Virey, Senior Technology & Market Analyst at Yole Développement (Yole) has commented that, “MicroLED displays could potentially match or exceed OLED performance in all critical attributes.” This includes brightness, contrast, color gamut, refresh rate, viewing angle, ruggedness and durability, resolution and pixel density, lifetime and power consumption etc.

Yole and its partner Knowmade, both part of Yole Group of Companies, have already released two microLEDs reports to reveal the status of the technology and give a deep understanding of the industry, the companies involved and the related supply chain.

Sony’s demonstration of a full HD 55” microLED TV at CES 2012, more than six years ago, was the first exposure for microLED displays and generated a lot of excitement. Since Apple acquired the Luxvue in 2014, many leading companies such as Facebook, Google, Samsung, LG or Intel have entered the game via sizable internal developments and acquisitions, like those of mLED and eLux, or investments in startups such as glō or Aledia.

Analysing Apple’s microLED patent activity shows that the company essentially halted its filing around 2015. This is a surprising finding in the light of the fact that the consumer electronics giant has maintained a large project team and consistently spent hundreds of millions of dollars annually on microLED development. A closer analysis however, brought up the name of a possible strawman entity used by Apple to continue filing patents and shows that the company is still advancing key aspects of microLED technologies.

“Despite a later start compared to pioneers such as Sony or Sharp, Apple’s portfolio is one of the most complete, comprehensively covering all critical technologies pertinent to microLEDs,” explained Dr. Virey from Yole. “The company is the most advanced and [is] still one of the best positioned to bring high volume microLED products to the market. However, it also faces unique challenges”, he added.

Apple can’t afford to tarnish its brand and introduce a product featuring such a highly differentiating technology that would be anything but flawless. Moreover, it requires high volumes, which makes setting up the supply chain more challenging than for any other company. In addition, the company has no prior experience in display manufacturing and due to its need for secrecy, has to develop pretty much everything internally, which requires the duplication of technologies and infrastructures that others have the option to outsource.

The smartphones sector is a good example to illustrate the leadership of Apple. Indeed, smartwatch volumes could reach 100 million units by 2027 and Apple has the potential to remain the single largest smartwatch maker, explained Yole’s analysts in microLED reports. Yole’s scenario assumes that Apple would start using microLEDs in 2021 in a new flagship model, and, as is common with the brand, will propagate the technology in a staggered fashion over the next three years as legacy products are discontinued.

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Vietnam’s Electronics Industry To Benefit From Us-China Trade War

Vietnam’s Electronics Industry To Benefit From Us-China Trade War

VIETNAM: Hanoi-based Bao Viet Securities Corp (BVSC) has reported that the Trump administration’s expansion of trade war to Chinese electronics will drastically impact key domestic exports such as mobile phones, smart devices and telecommunications equipment which carry an estimated value of US$256 billion. This equates to 50% of China’s total export turnover to the US.

Furthermore, due to increasing tariffs and labour costs brought upon by the trade war on Chinese mobile phones, Samsung is aiming to decrease its production by 40 million units in China and could look towards developing its manufacturing capabilities in other developing countries. Spurring the speculation that capital flows from Samsung’s operations in China may be diverted to Vietnam due to the country’s current status as the largest manufacturer of Samsung products with 240 million units being churned out per year. Although, India (50 million units), South Korea (40 million units) and Indonesia (8 million units) have also been identified as key mobile phone producers for Samsung.

Currently, China still holds key advantages in processing electronic products due to the presence of a developed infrastructure and auxiliary industries. However, the ongoing trade war may result in a loss of capital flows from large MNCS targeting the US market and this could re-divert foreign direct investment towards other Asian countries such as Vietnam. A trend that would result in increases in Vietnamese exports, growth in industrial zones and new job creation.

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