News: Suppliers
6 August 2025
Coherent inaugurates $127m factory in Vietnam
Materials, networking and laser technology firm Coherent Corp of Saxonburg, PA, USA has inaugurated its new $127m manufacturing facility in Nhon Trach Industrial Park, Dong Nai province, southern Vietnam, which will produce precision-engineered materials and photonics components used in applications spanning smartphones and electric vehicles to advanced medical devices.
“Vietnam is actively developing key strategic industries, including semiconductors,” said Vietnam’s Deputy Prime Minister Nguyen Chi Dung at the opening ceremony. “Today’s event is a concrete step in implementing the Joint Statement on upgrading Vietnam–US relations to a Comprehensive Strategic Partnership. Coherent is expected to make a meaningful contribution to Vietnam’s emergence as a key link and future hub in the global semiconductor supply chain,” he added.
Picture: Deputy Prime Minister Dung and Coherent executive VP Gary Kapusta (centre left) at the opening of the Dong Nai plant. Photo: VGP.
Coherent entered Vietnam in 2005, establishing its first factory at VSIP1 Industrial Park in former Binh Duong province, specializing in thermoelectric coolers, technical ceramics, wafers, advanced optics, and laser services. In the late 2010s, Coherent expanded to the north, and in 2019 inaugurated a facility at Yen Phong Industrial Park (IP) in Bac Ninh province.
In 2023, Coherent met with Dong Nai provincial leaders to propose three high-tech projects at Nhon Trach 1 & 2 IPs, including silicon carbide, semiconductor manufacturing, advanced optics, and the M-Cubed project for measurement, testing and semiconductor component production. With nearly $1bn in registered capital, the projects are expected to generate more than $1.2bn annually. In 2024, Dong Nai authorities issued investment certificates for all three projects.
“This new facility is designed with scalability, flexibility and sustainability at its core, to meet the rising global demand for advanced technologies,” said Gan YC, director of Nhon Trach 1 Factory. “It plays a pivotal role in enhancing our capabilities in silicon carbide and optics, both essential to the transformation of industrial systems, high-speed communications, and data-center infrastructure. Equipped with smart manufacturing systems and a high-quality local workforce, the factory strengthens our supply chain, reduces lead times, and brings us closer to key markets across Asia. This is not merely a factory, it is a strategic platform for innovation, growth, and long-term competitiveness,” he added.
Inauguration of the new factory is a significant step forward in Coherent’s global growth strategy, believes Nguyen Minh Man, general director of Coherent Vietnam (Dong Nai). “It reinforces our long-term commitment to Southeast Asia, a vital region for advanced manufacturing, technological innovation, and talent development,” he adds.
Coherent’s silicon carbide business completes $1bn in investments from DENSO and Mitsubishi Electric
