USI holds groundbreaking ceremony for its Vietnam facility and expects to proceed production in Q3 2021

On November 14, 2020, Universal Scientific Industrial (USI) held a groundbreaking ceremony for its Vietnam Facility in Dinh Vu Industrial Zone ("DVIZ") located in Hai An District, Haiphong City, Vietnam. City officials including Nguyen Duc Tho, Municipal Party Committee Member and Vice Chairman of Haiphong City People's Committee, Nguyen Tong Quan, Deputy Chief of Office of Haiphong City People's Council, Le Trung Kien, Member of the Standing Committee, Haiphong City Party Committee and Head of Haiphong Economic Zone Authority, Bui Ngoc Hai, Deputy Head of Haiphong Economic Zone Authority, Bruno Johan O. Jaspaert, General Director of Dinh Vu Industrial Zone Joint Stock Company, attended the ceremony to witness the facility's milestone moment.

On December 12, 2019, USI's board of directors approved an investment for a manufacturing facility to be set up in Vietnam and, established the Universal Scientific Industrial Company Limited, a wholly-owned subsidiary, for that purpose. With a planned investment of US$200 million in Phase I, the project is one of the biggest in Haiphong, Vietnam in 2020. Covering an area of almost 65,000 square meters, the smart manufacturing facility will be built according to Industry 4.0 standards and be completed in two phases.

USI currently has 10 manufacturing facilities around the world. The Vietnam facility will be USI's first production base in Southeast Asia, and will play an important role in the company's "modularization, diversification and globalization" strategy to fulfill international customer orders and strengthen supply chain management. The company will also be able to leverage on the country's labor resource, tax incentive programs and strategic location to enhance cost competitiveness, consolidate and boost its market position. USI's investment will also help to promote the development and upgrading of the local high-tech industry, increase employment opportunities and fuel economic growth in Vietnam.

According to Akira Kuei, Director of Manufacturing Services Division of USI Vietnam Facility, Phase I of the construction would be completed in the second quarter of 2021 and begin production in the third quarter. The facility will initially focus on manufacturing and assembling chips for wearable electronic devices. The Vietnam facility is expected to create more than 1,700 job opportunities for Haiphong City and cultivate professional talents in the high-end electronic product manufacturing industry that will help promote Haiphong's economy and foster the development of its high-tech segment.