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Nissin Electric Vietnam Co., Ltd. to Strengthen Its Framework for Enhanced Production Capacity —Meeting strong demand for contract production of semiconductor manufacturing equipment and products aimed at creating a low-carbon society—

Nissin Electric Vietnam Co., Ltd., one of the group companies of Nissin Electric Co., Ltd. that performs contract production of power system equipment and parts, has strengthened its business framework since 2023 to enhance its production capacity by expanding its production area and enhancing its processing equipment so as to meet the strong demand for contract production of products for the semiconductor manufacturing equipment industry and products for creating a low-carbon society, such as those related to renewable energy and electric vehicles (EVs).

Sheet metal working area

Electrogalvanizing line

 

[Major Measures]

1. Expand the sheet metal working area
   In January 2023, the company established a rental factory with a total floor area of 13,440 m² adjacent to the existing factory as the company’s third factory and expanded its sheet metal working area. This has increased its production capacity by approximately 1.5 times compared to the previous level, enabling the company to respond to increasing orders while also providing high-quality products.
2. Construction of an electrogalvanizing line
   In 2024, Nissin Electric Vietnam built a new electrogalvanizing line in its third factory that is capable of handling high-quality, large-scale products, a rare feat in the industry. This line complies with the applicable environmental standards. The company has established a framework that allows it to process the plating of large products in-house, which had previously been outsourced. Furthermore, to meet the diverse needs of its customers, it began accepting plating orders in February 2025.
3. Start of Electronics Manufacturing Services (EMS)
   In recent years, the manufacturing industry has seen an increase in customers who want to procure not only parts processing but also final assembly as a way to optimize production systems and solve labor shortages, and in companies that specialize in product design and development without having their own factories. In particular with EMS, it is difficult to automate electric wiring and assembly processes, so there has been an increase in requests for this work provided by Vietnamese companies that offer high cost performance and technical capabilities. Nissin Electric Vietnam has been building a framework to provide high-quality services, including hiring more engineers, so that it can also handle EMS, including the installation of electronic wiring. It began providing these services in April 2025.
4. Strengthening engineer training using a unique curriculum
   The semiconductor industry, which accounts for 80% of Nissin Electric Vietnam’s sales, including semiconductor manufacturing equipment-related products, is subject to drastic fluctuations in demand, making it extremely difficult to secure personnel. For this reason, the company is actively hiring many Japanese engineers with extensive processing experience, supporting employees in improving their skills using its own curriculum, and strengthening the training of engineers who can flexibly handle processing of a wide variety of products with short delivery times.

Nissin Electric Vietnam handles the processing of a wide variety of small lots of equipment and parts as a one-stop service and has customers not only in Japan but also in Europe, the United States, and other parts of the world. To meet broad-based demand, Nissin Electric Vietnam Co., Ltd. will continue to meet the expanding needs of our customers through various manufacturing processes, and promote business activities that contribute to development of the local economy.

This is a business activity that contributes to one of the six growth strategies in the Nissin Electric Group Medium-to-Long-Term Business Plan VISION2025, “Expansion of environmentally friendly products”, “Response to renewable energy”, “Identifying demand resulting from increasing environmental awareness in emerging countries” and “Business expansion in association with the expansion of EVs” and one of the business foundation strengthening items “Enhancing manufacturing capabilities” and “Improving productivity”.

The Nissin Electric Group has been stepping up its efforts to promote the SDGs through its business operations. This accomplishment is related to the following goals among the 17 SDGs.

7.Affordable and Clean Energy

8.Decent Work and Economic Growth