2026.06.02
Optical glass major HOYA Corporation has announced it will build a new plant in Vietnam to make glass substrates for HDDs (hard disk drives). The investment is about JPY 50 billion, with completion targeted around 2028. Demand for high-capacity HDDs for AI data centers is surging, and the new plant responds to the fact that existing plants are running at full capacity.
This will be HOYA's fourth glass substrate plant, in addition to its two existing sites in Vietnam and one in Laos.
| Item | Description |
|---|---|
| Investment amount | Approx. JPY 50 billion |
| Expected completion | Around 2028 |
| Products | HDD glass substrates |
| Plant number | 4th (3rd site in Vietnam) |
| Existing sites | 2 plants in Vietnam + 1 plant in Laos |
| Operating status | Existing plants running at full capacity |
| Separate investment | EUV blanks plant in Singapore (approx. JPY 42 billion, mass production to start in 2028) |
The rapid expansion of data center investment driven by the AI boom is reshaping the structure of the HDD market. The huge volumes of data generated by training and running generative AI are stored long-term as low-access-frequency 'cold data.' HDDs, which are cheaper per gigabyte than SSDs, are being reevaluated as the storage medium for this data.
Increasing HDD storage capacity requires thinner discs. Conventional aluminum substrates are difficult to make thinner due to strength limitations, but glass substrates can be made substantially thinner. HOYA holds an almost monopolistic global share of the glass substrate market, making the shift to high-capacity HDDs a direct tailwind for the company.
| Item | Aluminum substrate | Glass substrate (HOYA) |
|---|---|---|
| Thinning | Limited (around 0.635mm) | Can be made substantially thinner (0.5mm or less) |
| Smoothness | Standard | High precision (contributes to higher recording density) |
| Strength | Prone to bending | Hard and resistant to breaking |
| Main use | Conventional 3.5-inch HDDs | High-capacity enterprise HDDs |
| Global share | Multiple manufacturers | HOYA holds an almost total monopoly |
The Vietnamese government welcomes HOYA's additional investment. Vietnam is actively courting foreign direct investment to build itself as a manufacturing base for semiconductors and electronic components, and HOYA's JPY 50 billion investment ranks as one of the larger FDI deals into Vietnam in 2026.
HOYA has a track record of gradually shifting production from Thailand to Vietnam, and has accumulated substantial operational know-how there. The quality of Vietnam's manufacturing workforce and the stability of its supply were decisive factors behind the additional investment.
Among Japanese manufacturers, the topic of 'HOYA accelerating its concentrated investment in Vietnam' has drawn attention. The company has also announced a JPY 42 billion EUV blanks plant in Singapore for semiconductor applications, making clear a 'function-based distributed investment' strategy of choosing the optimal location for each use.
HOYA's additional investment in Vietnam carries three implications for Japanese manufacturers.
HOYA's new plant construction will ripple across Vietnam's entire electronic components manufacturing ecosystem. Glass substrate production requires suppliers of polishing materials, cleaning agents, inspection equipment, and more, and the plant construction is expected to accelerate the entry of related companies into Vietnam as well.
AEON Mall's simultaneous push of four facilities in Vietnam, together with this move, show that Japanese companies' investment in Vietnam has become more active in 2026 on both the manufacturing and retail fronts. HOYA's additional investment is a strong tailwind for the Vietnamese government's goal of 'becoming a semiconductor and high-tech industry hub by 2030.'
| Item | Details |
|---|---|
| Investing company | HOYA Corporation (listed on the Tokyo Stock Exchange Prime Market, headquartered in Tokyo) |
| Business segments | Information and communications (electronics business) |
| Existing Vietnam sites | 2 plants near Hanoi (2.5-inch and 3.5-inch glass substrates) |
| Laos site | Xaysettha Development Zone (outskirts of Vientiane, monthly production capacity of 10 million units) |
| Global glass substrate share | Almost 100% (dominant supplier) |
| AI-related demand | For high-capacity HDDs used in long-term cold data storage |
HOYA's JPY 50 billion investment is a good example of a 'niche monopoly strategy' in the age of AI data centers. Doubling production capacity for a glass substrate business it holds an almost 100% global share of, ahead of a demand surge, is a rational management decision.
Officials at Japanese companies handling Vietnam expansion should read HOYA's investment trend as a 'signal of reliability for manufacturing bases in Vietnam.' The fact that a precision components maker is putting tens of billions of yen in additional investment into Vietnam is also evidence that quality, talent, infrastructure, and the policy environment have all reached a certain standard.
Source:
MORE
Jollibee sells Highlands' parent company shares for 2.3 trillion dong, founder side to hold 51%Four Vietnam-built offshore substations head to Poland, totaling 16,000 tons built simultaneouslyCentral invests a new 3.5 billion dollars in Vietnam, shifting store focus to tier 3 and 4 citiesGolden Gate, with about 600 restaurants, starts up its second food plant in Phu Tho ProvinceSojitz acquires a 27.64% stake in Vietnamese airport services firm Taseco AirsSaeki Selva, with 56 stores in Japan, starts with workforce training for its 100-store push into VietnamSOJAPAN
We support Japanese companies entering India, from market research through local partner development, test sales, and import.