In a significant development for the global electronics supply chain, Foxconn has recently broken ground on a new PCB (printed circuit board) factory in Vietnam. The foundation-laying ceremony took place at the Nam Son-Ho Ling Industrial Park in Bac Ninh, northern Vietnam, marking a crucial step in Foxconn's expansion in the region. The project received an official investment registration certificate from the Bac Ninh Provincial People's Committee on June 6, 2024. With a total investment of $383.3 million, this factory spans 14.2 hectares and will be equipped with state-of-the-art production lines to meet the growing demand for electronic products and PCBs in high-tech industries. Once completed, the factory is expected to create thousands of new jobs, injecting fresh momentum into the local economy.

Meanwhile, in South Korea, battery material company JEIO (KOSDAQ:418550) is embroiled in a legal dispute with PCB company Isu Petasys (KOSPI:007660). On March 24, JEIO announced that it had filed a lawsuit for damages after Isu Petasys abandoned its acquisition plans. The two companies had signed a share purchase agreement in November 2023, with Isu Petasys agreeing to acquire JEIO. However, due to strong opposition from minority shareholders and regulatory intervention from the Financial Supervisory Service, Isu Petasys withdrew from the deal earlier this year.

In response, Isu Petasys demanded the cancellation of the agreement, citing the seller's failure to fulfill obligations, and requested the return of the deposit. JEIO, on the other hand, maintains that the cancellation of the acquisition was due to Isu Petasys's refusal to proceed with the agreed capital increase, resulting in significant business losses and a decline in corporate value. JEIO's management stated, “The dispute, which began at the end of last year, was entirely triggered by Isu Petasys's unilateral actions. JEIO holds no responsibility in this matter.” They further emphasized that the lawsuit aims to clarify accountability and resolve the issue. As of the latest update, Isu Petasys has not issued a response to the lawsuit.

These developments underline the dynamic shifts in the global manufacturing and corporate acquisition landscape, as Foxconn's investment bolsters Vietnam's position in the high-tech manufacturing space, while JEIO's legal battle highlights challenges in corporate governance and M&A transactions in South Korea's semiconductor and materials sector.