2026.06.11
Sanyo Denki (Tokyo), which makes cooling fans and power supply equipment, is planning a new plant in the Thang Long II Industrial Park in Hung Yen Province, northern Vietnam. The investment is JPY 7 billion (about USD 46.82 million). Against a backdrop of growing demand in the AI and semiconductor fields, groundbreaking is planned for September 2026, with operations starting in July 2027. For a company that had no sales base in Vietnam, this will become its third major production base worldwide, after Japan and the Philippines.
The new plant will be located in the Thang Long II Industrial Park, on a site of about 47,800 square meters, in a three-story steel-frame building. Production capacity will be about 500,000 cooling fans, about 50,000 stepping motors, and about 5,000 servo motors per month. It is designed to meet strong heat-dissipation demand for AI and semiconductor applications. The investment is JPY 7 billion (about USD 46.82 million), with groundbreaking expected in September 2026 and operations starting in July 2027.
Sanyo Denki was founded in 1927 and is an electrical equipment maker headquartered in Tokyo, with operating revenue of JPY 97.8 billion (about USD 654.15 million) in fiscal 2024. This new Vietnam plant will become its main production base, following Nagano Prefecture and Subic Bay in the Philippines. Until now, the company has distributed its products in Vietnam through 10 major local distributors, without having an official representative office. Establishing a production base is aimed at raising local supply capacity and customer response a notch further.
| Item | Description |
|---|---|
| Location | Thang Long II Industrial Park, Hung Yen Province |
| Investment amount | JPY 7 billion (about USD 46.82 million, at JPY 150 to the dollar) |
| Site area | About 47,800 square meters (three-story steel-frame building) |
| Cooling fan production | About 500,000 units per month |
| Stepping motors | About 50,000 units per month |
| Servo motors | About 5,000 units per month |
| Groundbreaking / operation start | September 2026 / July 2027 |
First, heat-dissipation demand from AI and semiconductors was the deciding factor in the investment decision. Data centers and high-performance chips are in a constant battle with heat, so demand for cooling fans is structurally growing. Sanyo Denki itself cites growing demand in the AI and semiconductor fields as a reason for the investment.
Second, the location, Hung Yen Province, merged with Thai Binh Province a few years ago, becoming a broad industrial zone bordering Bac Ninh, Ninh Binh, Hanoi, and Hai Phong. Being close to the northern supply chain is a major advantage.
Third, Japanese companies' investment in AI infrastructure is increasingly concentrated in the north. This is part of the same current as HOYA's move to invest about JPY 50 billion in a glass substrate plant for HDDs, built to meet AI data center demand,.
Sanyo Denki's entry shows that northern Vietnam is becoming established as a "hub for the AI and semiconductor supply chain." For Japanese companies handling cooling, power, and precision components, producing close to the cluster of data centers and chip-related customers carries real significance. The company's decision to shift from local distributors to its own production base is a typical example of insourcing the supply network in a market whose scale has become visible. Companies considering a base in the north should prioritize proximity to business partners and logistics hubs when selecting an industrial park.
The new cooling fan plant is a sign that Vietnam is starting to take on "upstream components" for AI infrastructure as well. As production of components for semiconductors and data centers increases, demand for related materials, equipment, and logistics will rise in tandem. Apple assembling smart home hubs at a Vietnam plant and moves like PepsiCo building two plants for USD 400 million— as with these large-scale investments, the base of production is broadening from finished products to components, and the north is gaining depth as a manufacturing cluster for the AI era.
Sanyo Denki is investing JPY 7 billion in Hung Yen Province, planning a cooling fan plant with an eye on AI and semiconductor demand as its third base worldwide. Groundbreaking is planned for September 2026, with operations starting in July 2027. For Japanese companies, northern Vietnam is becoming a strong option for gaining a foothold in the AI infrastructure supply chain, and building production bases close to customer clusters is entering a phase where it will determine competitiveness.
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