Supplier Samsung invested 1 billion USD in chip manufacturing activities in Vietnam

DNHN - Hana Micron, a manufacturer of memory products and chip packaging, has announced that it is moving equipment to a new factory in Bac Giang province to begin production.

A Samsung supplier, Hana Micron, intends to invest $1 billion in chip production in Vietnam by 2025, as part of a wave of semiconductor investment in Vietnam.

This manufacturer, which specialises in memory products and chip packaging, is relocating equipment to a new factory in the province of Bac Giang to begin production. Bac Giang province is home to three Apple suppliers and, along with neighbouring Bac Ninh province, produces the majority of Samsung mobile phones worldwide.

Mr. Choi ChangHo, chairman of the Hana Micron Group, stated that Hana Micron Vina Co., Ltd. Hana Micron Vina Company in Vietnam is the leading production facility in Hana Micron's global business operations; 70% of the total workforce will be comprised of Vietnamese recruits.

Mr Dao Xuan Cuong, Head of the Management Board of Industrial Parks (IZs) of Bac Giang province, stated that this is one of the province's most important FDI projects. This project marks the beginning of Bac Giang's participation in the global semiconductor production chain, which has extremely stringent requirements for technology, investment capital, and highly qualified labour. The purpose of the Hana Micron Vina Co., Ltd. project is the manufacture and packaging of semiconductor products.

The province of Bac Giang determined that the Hana Micron Vina Co., Ltd. project is essential to the local socio-economic development; this is the first semiconductor manufacturing project in the North.

It is an opportunity for Bac Giang province to attract more high-tech projects by government policies and investment attraction strategies. The successful implementation of this project will be the foundation for the development orientation of the semiconductor manufacturing ecosystem in Bac Giang province in particular and the North in general.

According to information from the province of Bac Giang, Hana Micron's factory will collaborate with a second Taiwan-invested semiconductor factory in 2024.

Other companies, including Synopsys, have also relocated their chip production from China to Vietnam. In September, the American company participated in the opening of a chip design centre in Hanoi, a field also pursued by Vietnamese companies FPT and Viettel.

Vietnam has not yet raised billions of dollars to construct an advanced semiconductor manufacturing facility.

According to Deputy Minister of Information and Communications Nguyen Huy Dung, Vietnam is prepared for the semiconductor industry's breakthrough expansion. Vietnam is "prepared to welcome semiconductor industry investors with highly preferential mechanisms."

According to a report by the Semiconductor Industry Association, the worldwide revenue from semiconductor chips in 2022 will be approximately 556 billion US dollars. With the above-mentioned development potential, the semiconductor industry is a cakewalk for many nations. Vietnam is not a special case.

Thu Tra (T/h)