Dutch NXP to manufacture $30 mobile phones in Vietnam

NXP Semiconductors BV, a privately-held chipmaker, revealed that it is negotiating with some Vietnamese partners to manufacture low-cost mobile phones of less than $30.

NXP opened a representative office in Vietnam and plans to move its research and development centre to Vietnam as soon as possible. 

NXP is scheduled to introduce “made-in-Vietnam” mobile phones this year’s end and set up a mobile phone retailing network in Vietnam. 

“Not o­nly mobile phones, but also LCD TV sets, washing machines and personal entertainment devices… will be manufactured in Vietnam based o­n NXP’s technology,” said Jack Van Mook, CEO of NXP Southeast Asia. 

“According to many researchers, by 2011 the total sales of the electronic component market will be around $281 billion, double the current figure. Vietnam will see a growth of 13%. In 2007, this market spent $921 million o­n electronic chips. If this market grows 16% annually, by 2010 Vietnam will import up to $4 billion of electronic components,” Jack Van Mook said. 

“There is fierce competition in the electronic industry. We are moving product development activities to other markets, in which Vietnam is a top choice for the above figures,” he said.

NXP plans to combine with Vietnamese universities to promote its research and development activities. Currently it donates chips and equipment worth $20,000 to the Hanoi University of Technology and the Post and Telecommunication School in Hanoi.

NXP is o­ne of the ten largest semiconductor companies in the world. It was founded by Philips in 2006. Based in Europe with around 37,000 workers in 20 countries, NXP’s revenue in 2007 reached $6.3 billion. NXP has many direct clients, accounting for 70% of its revenue, with famous names like Nokia, Philips, Samsung, Siemens, Sony, Dell, Ericsson, Foxconn, etc.