A province about 60 km from Hanoi will become the new production hub for components for SpaceX, the company owned by Elon Musk, currently the world’s richest man.
SpaceX’s partners in Taiwan (China) are expanding production in Vietnam, primarily due to direct requests from Musk’s company.
According to Reuters, Elon Musk recently asked Starlink’s satellite internet equipment suppliers to shift production from Taiwan (China) to Vietnam, citing concerns over geopolitical risks.
Specifically, Taiwan-based Wistron NeWeb Corporation (WNC), a supplier of components to SpaceX, is producing routers and network equipment for Musk’s Starlink satellite internet at a factory in Ha Nam, a province of Vietnam.
Many of SpaceX’s partners are shifting production to Vietnam
SpaceX’s request is leading its partners to gradually relocate component production to Vietnam.
In its annual report, WNC acknowledged that in light of geopolitical risks and rapidly changing customer demands, it has continued expanding its global production capacity.
The factory in Ha Nam plans to at least double its current workforce of 3,000 people. In fact, since mid-October, banners for recruitment have appeared outside the plant.
Reuters also reported that Universal Microwave Technology, another SpaceX supplier and satellite component manufacturer, invested in a factory in Vietnam in 2024. The company is also building a new facility in Thailand.
According to the company, expanding overseas production capacity helps reduce concerns about geopolitical risks and strengthens cooperation with clients.
As of March, Universal Microwave Technology received approval from the Vinh Phuc Provincial Industrial Zone Authority for a $5 million investment in Thang Long Vinh Phuc Industrial Park. The project spans 3,360 square meters and aims to produce 48,000 satellite metal components annually (9.6 tons) and 7,200 metal components for 5G backhaul (2.4 tons).
Similarly, Shenmao Technology, a supplier of soldering materials for printed circuit boards and a SpaceX partner, announced a $5 million investment in a new facility in Vietnam.
Taiwan (China) has a well-developed satellite industry, with around 50 companies producing ground equipment and sensitive components.
Additionally, Chin-Poon Industrial, another satellite component manufacturer and SpaceX partner, revealed that Elon Musk’s company has asked them to shift new order production from Taiwan (China) to Thailand.
The relocation of Starlink component production out of Taiwan (China) reflects a continuing trend.
Sources from Reuters indicate that most SpaceX partners are moving or expanding production to Vietnam due to requests from the company.
Elon Musk’s company plans to invest $1.5 billion in Vietnam
On September 25, General Secretary Tô Lâm met with Tim Hughes, Senior Vice President of SpaceX, the world’s leading company in spacecraft, satellite launch services, and satellite communications.
During the meeting, Tim Hughes stated that SpaceX initiated satellite internet projects five years ago and now has more than 6,000 satellites in low orbit. These satellites can provide internet access almost anywhere on Earth.
Recognizing Vietnam as a highly promising market for SpaceX’s satellite internet plans, Tim Hughes said the company plans to invest $1.5 billion in Vietnam in the near future.
Additionally, the Senior Vice President expressed SpaceX’s desire to support Vietnam in realizing its goal of universal internet access and called for cooperation from the Vietnamese government and related ministries to launch collaborative projects.
As of September, SpaceX had not provided specific details regarding the timing or exact purpose of the investment.
Previously, Tim Hughes first introduced the idea of deploying Starlink services in Vietnam during a meeting with Prime Minister Phạm Minh Chính in New York (USA) in September 2023. At that time, SpaceX leaders aimed to provide broadband internet services to underserved areas in the country.
SpaceX, founded by Elon Musk in 2002, was valued at over $100 billion as of October 2021. With such a high valuation, CNBC has described SpaceX as a “super unicorn” in the tech industry.
Source references: Reuters, CNBC, VGP