Memory chip board maker TLB said on Wednesday that it will form a subsidiary at Vietnam within the year.
It has signed a leasing agreement for lands where it will build a new factory.
It will spend 5 billion won for the factory, which will start construction during the first half of 2022 and start partial operations during the second half, TLB said.
The South Korean company said it was still reviewing what it plans to manufacture at the new factory.
It is TLB’s first foreign factory and the company didn’t mention the plan prior to listing on KODAQ in December last year.
However, at the time, it did say it plans to use the funds from the listing to build a new factory for DDR5 DRAM module boards.
TLB was founded in 2011 when around 60 employees of Daeduck Electronics split off.
It currently manufactures printed circuit boards for memory chips at its factory in Ansan.
Its biggest customer SK Hynix launched DDR5 DRAM in November last year.
TLB had said in April that it plans to spend 11.7 billion won to expand its production capacity and 15 billion won in September to secure more lands around Ansan for the expansion.
TLB’s accumulated earnings up to the third quarter this year was 127.1 billion won in revenue and 9.2 billion won in operating income, an increase of 10.8% and a drop of 31%, respectively, from the same time period a year ago.
Last year during the first half, the firm has benefited from its rivals in Taiwan being forced to shut down their factories due to the pandemic.
Its rivals include compatriots Simmtech and Korea Circuit as well as Taiwan’s Unimicron and Tripod.
These companies share demand from Samsung, SK Hynix and Micron.