HANOI, VIETNAM  - The Taiwan Printed Circuit Association (TPCA) is planning to create a special zone in Vietnam.

Many Taiwan-based PCB manufacturers are considering moving their production out of China, where the government imposes greater environmental restrictions and offers less tax incentives.

TPCA secretary general Chao Chia-chiang said the organization has asked members to consider a proposal to set up a PCB industry sector in Hanoi, exclusively for Taiwanese manufacturers.

Development of the zone is expected to begin in eight months and will be located on approximately 740 acres of land, which will reportedly accommodate 10 to 20 PCB manufacturers, Chao said.

HannStar Board, Gold Circuit Electronics, Unimicron Technology, Tripod Technology, and Compeq Manufacturing have reportedly all sent representatives to Vietnam to study the possibility of moving production there, according to industry reports.

But to date, few Taiwan-based PCB makers have made actual investment in Vietnam, siting the often-heard problems with infrastructure in the Southeast Asian nation. HannStar Board previously stated that it would not set up production facilities in Vietnam until infrastructure improves, according to sources.

According to Chao, only two Taiwan-based PCB manufacturers, Uniflex Technology and Sunching Electronics, are currently running production in Vietnam.