UMS Integration announced a planned investment of approximately US$3.6 million to acquire a 51.6% stake in a new joint venture based in Vietnam. The deal consolidates three local precision engineering firms: Viet Nguyen Mechanical Precision Company Ltd, Central Metal Mechanical Company Ltd, and Global Metal Plating Company Ltd [1, 2].
The joint venture will provide precision engineering, metal processing, and plating services tailored for the semiconductor and related industries. UMS Integration said the move aims to expand its operational presence and manufacturing capabilities in line with strong growth in the semiconductor sector, particularly driven by AI demand [1, 2].
According to CEO Andy Luong, "We can gain from the lower costs and better economies of scale in view of the strong growth in the global semiconductor industry." He added, "With more diversified production facilities, we can benefit from early risk mitigation and strong executive alignment across our group operations, as this investment will complement our existing production facilities in Singapore and Malaysia" [2].
The investment will be funded internally and is not expected to materially affect UMS Integration's earnings or net tangible assets for the current financial year [1, 2]. The existing founders of the Vietnamese firms, Tran Thanh Van and Nguyen Trong Dang, will continue to manage daily operations after the investment [1, 2].
Vietnam is emerging as an alternative hub for chip manufacturing to China. Recent US regulatory changes could allow Vietnam greater access to advanced chip-making technologies, supporting the country’s growth in semiconductor-related industries [2].
UMS Integration's 2025 annual report notes that its revenue is mainly derived from Singapore (62.4%), Malaysia (13.3%), the US (10.2%), and Taiwan (7.2%) [1]. The company reported a 43% increase in net profit for the first quarter of fiscal 2026, rising to S$14 million from S$9.83 million in the prior year, driven by stronger sales and foreign exchange gains [1].
The memorandum of understanding for the joint venture was signed on June 4, 2026, with a public announcement following on June 5 [1, 2]. The US$3.6 million investment figure remains indicative and will be finalized following due diligence [2].
