Demand for high performance servers and telecom equipment is rising with the growth of AI, while markets for semiconductor manufacturing equipment, robots, and other precision machinery are also showing strong growth, the company said in a notice released on September 19.

“To further strengthen competitiveness and respond to this demand with our high-performance, high-quality products and broad customization options, the company has resolved to build a new plant in Vietnam,” it said.

This facility will become the group’s third large-scale production base, following Ueda, Nagano in Japan and the Subic Bay Freeport Zone in the Philippines.

By expanding its global production network, the company aims to reinforce supply stability and enhance its ability to serve customers worldwide.

The Vietnam plant will be a three-story steel-frame facility, built on a 47,800-square-meter site in Thang Long II Industrial Park, Nguyen Van Linh commune, Hung Yen province.

Its main products will include cooling fans, with a capacity of about 500,000 units per month; stepping motors, at 50,000 units per month; and servo motors, at 5,000 units per month.

Construction is scheduled to begin in September 2026, with operations expected to start by July 2027.

Although Sanyo Denki does not yet have an official representative office in Vietnam, its products are currently distributed through 10 main distributors in Hanoi, Hai Phong, Da Nang, and Ho Chi Minh City.

Founded in 1927 and headquartered in Tokyo, Sanyo Denki posted operating revenue of JPY97.8 billion ($654.15 million) in fiscal 2024, down from JPY112.9 billion in 2023 and JPY120.8 billion in 2022.

Hung Yen and Thai Binh provinces were recently merged to form the new Hung Yen which borders Bac Ninh, Ninh Binh, Hanoi, Hai Phong, and the East Sea.