As global telecom equipment makers like Ericsson and Nokia shift downscale their production in China, their South Korean suppliers are also following suit.
Ace Technologies and KMW, the suppliers of the two telecom equipment giants are shifting their production to Vietnam.
According to a report by TheElec, the move from Ericsson and Nokia has become an opportunity for its South Korean components and materials providers that have facilities in Vietnam, as per a source close to the matter. KMW and Ace Technologies supply their goods to Nokia and Ericsson respectively and are downsizing their productions in China, and now focusing more on Vietnam.
Similarly, Samsung has also moved its Networking division from Gumi to Suwon back in 2019, and had begun mass production in the country within the same year. Notably, Many South Korean suppliers have already built a good foundation in Vietnam, as they followed the tech giant, Samsung, who had been investing heavily in the Southeast Asian country.
At the moment, Vietnam is offering cheaper labor costs in comparison to China and is more suitable for mid sized supplier firms.
Ace Technologies had completed its new factory in the region back in March, which has tripled its production capacity of radio systems and antenna filter units. It is now also planning on producing over 100,000 units of 4G and 5G remote radio heads as well.
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