Taiwan Merry Electronics pairs with China-based AirPods maker Luxshare to produce audio gear in Vietnam
TAIPEI, NNA – Taiwanese consumer electronics maker Merry Electronics Co. plans to set up a joint venture in Vietnam with a Chinese peer for headset production to dilute impact from the U.S.-China trade dispute.
Merry Electronics will invest $12.2 million and own a 51 percent stake in the venture, while Shenzhen-listed AirPods earphones maker Luxshare Precision Industry Co. will take a 49 percent share through a subsidiary, according to Merry Electronics’ statement last Thursday to the stock exchange in Taipei.
The eventual total investment will come to $40 million, the Taiwanese firm added.
The joint venture factory will make wired and wireless headsets after it starts up in the second half of this year, a report in the Taiwan-based Economic Daily News says. The investment still requires regulatory approval in Vietnam and Taiwan.
Vietnam offers the venture low production costs, tax incentives and proximity to China, Merry Electronics’ President Allen Huang was quoted saying by the Taiwanese news service Central News Agency. China supplies raw materials to factories in Vietnam and takes shipments of finished goods for the giant consumer market.
Luxshare makes cables, connectors and wireless chargers in addition to Apple’s AirPods. The 16-year-old company with sales of $5.4 billion trades publicly in Shenzhen and already has production in Vietnam.
“The move is in response to our clients’ demands and to increase overseas bases to enhance our competitiveness in the global market,” he was quoted saying. “The collaboration with Luxshare Precision enables us to reduce operational risks as our partner has garnered investment experiences and resources in Vietnam.”
Merry Electronics exports around half its products, such as headsets and speakers, to the United States, the Central News Agency report says.
The Vietnam investment marks its latest foray into Southeast Asia after Thailand and Singapore. Merry Electronics also produces audio gear in Taiwan, Hong Kong, mainland China and the United States.
The Taiwanese firm reported monthly revenue of 1.85 billion New Taiwan dollars ($61.2 million) in January, down 36.5 percent over the same month of 2019, according to a financial statement posted to the stock exchange.