Hana Micron, a South Korean company that makes chips and memory products, plans to invest $1 billion in chip production in Vietnam by 2025.
The semiconductor company specializing in assembly and product packaging, as well as test and module manufacturing services, is getting ready to start production in their new factory in Bac Giang province. The northeastern province is known for hosting three Apple suppliers and plays a big role in making Samsung phones
The chip industry got a lot of attention when US President Joe Biden visited Vietnam in September. American companies Amkor and Marvell announced that they would expand their operations in Vietnam. Vietnam’s Prime Minister, Pham Minh Chinh, also visited the US facilities of Nvidia and Synopsys to seek more investment.
Hwang Chul Min, the human resource manager at Hana Micron, told Nikkei Asia that their project in Bac Giang is important for the region’s development and follows the government’s plans. He believes it will attract more high-tech projects and help the semiconductor industry grow.
This news is good for global chipmakers who want to diversify their supply chains. It’s also a positive sign for Vietnam, which has been trying to attract these companies for a long time.
However, there are still some challenges. Samsung, one of Hana Micron’s clients, refused to build a chip factory in Vietnam, saying they’ve already invested a lot here. Intel, a big chip investor, chose Malaysia for a major expansion instead.
Vietnam also needs more skilled workers and better infrastructure. Hana Micron will hire 4,000 people and work with Vietnam-Korea Industrial Technical College for recruitment. They are also looking for staff for different roles in their Bac Ninh factory.
The province of Bac Giang is making sure Hana Micron has the resources it needs, like electricity and water, for uninterrupted production. In the past, there were power shortages in the province, which worried investors.
Another semiconductor factory, funded by Taiwan, will start operating in 2024. Synopsys, a chip software maker, is keeping an eye on China's risks and is moving some of its operations to Vietnam.
Vietnamese companies FPT and Viettel are also focusing on chip design. Vietnam wants to expand its semiconductor industry and is ready to welcome investors with incentives like possible tax exemptions for up to four years.