Semiconductor Advances in Southeast Asia: South Korean memory chip manufacturers, Synopsys, Amkor Technology and Marvell Technology are heavily investing in Vietnam
After years of attempting to develop its semiconductor industry and experiencing stagnation, Vietnam is extending its hand to global chip manufacturers, sparking a surge in chip investments. (Image source/Hana Micron official website)
On October 3rd, it was reported that South Korean memory chip manufacturer Hana Micron will invest $1 billion in chip production in Vietnam, in response to the policies of the Vietnamese government aimed at attracting chip companies. This Samsung supplier has begun transferring its equipment to a new factory.
After years of attempting to develop its semiconductor industry and experiencing stagnation, Vietnam is extending its hand to global chip manufacturers, sparking a surge in chip investments.
Hana Micron plans to invest $1 billion in chip production in Vietnam
Hana Micron plans to invest $1 billion in chip production in Vietnam by 2025, marking the latest wave of semiconductor investments flooding into this communist country.
The South Korean chip packaging and memory manufacturer told Nikkei Asia, ‘The company is in the process of transferring equipment to its second factory in Bac Giang province to prepare for production, and our customers’ audit schedules are quite busy.’ This province is now home to three Apple suppliers, and neighboring Bac Ninh province is famous for producing a majority of Samsung phones globally.
‘Hana Micron’s plant construction plan plays a crucial role in the socio-economic development of Bac Giang province and aligns with the government’s development direction, which will create opportunities to attract more high-tech projects and lay the foundation for the development of the semiconductor production ecosystem,’ said Hwang Chul Min, HR Manager at Hana Micron, in an interview with Nikkei News.
These recent announcements are providing momentum for both global chip manufacturers and Vietnam. Global chip manufacturers are driven by geopolitical pressures to diversify their supply chains, and after years of stagnation, Vietnam has finally succeeded in attracting these companies.
Samsung Electronics has already invested heavily in Vietnam
However, challenges still persist. Hana Micron’s major customer, Samsung Electronics, has refused the Hanoi government’s request to establish a semiconductor wafer fab, according to insiders who told Nikkei News, stating that Samsung Electronics has already invested heavily in Vietnam. Vietnam’s largest chip investment firm, Intel, has also chosen to invest in Malaysia, significantly expanding its chip packaging capacity.
Vietnam is working to meet skill and infrastructure demands. According to information released on the Bac Giang provincial government website last Saturday, Hana Micron will employ 4,000 workers and collaborate with the Vietnam-Korea Industrial Technology College to recruit talent. Hana Micron also has a factory in Bac Ninh, where they are recruiting information technology, procurement, production planning personnel, and production line workers.
The Bac Giang provincial website stated, ‘Hana Micron has received special attention from Bac Giang Province in ensuring continuous production conditions such as electricity and water resources.’ In early June, there was a power shortage that led to hours-long power outages in several provinces, including Bac Giang, raising concerns among investors nationwide and across various industries.
The official website of Bac Giang province also introduced, ‘Hana Micron’s factory occupies 6 hectares, and another semiconductor plant invested by Taiwan will begin operations in 2024.’
The chip industry was a focal point during U.S. President Biden’s visit to Vietnam in September, during which the Biden administration announced that American companies Amkor and Marvell would expand production in Vietnam. A few days later, Prime Minister Pham Minh Chinh of Vietnam visited U.S. factories of Nvidia and Synopsys, seeking further investments.
U.S. companies Synopsys, Amkor, and Marvell are making substantial investments in Vietnam
In fact, the U.S. government has already included Vietnam in the scope of the ‘CHIPS Act’ subsidies, and Synopsys, Amkor, and Marvell are making substantial investments in Vietnam’s semiconductor industry.
Among them, the U.S. chip software company Synopsys has been closely monitoring China’s risks when turning to invest in Vietnam. This American company participated in the establishment of the Hanoi Chip Design Center in September, where Vietnamese companies FPT and Viettel also took part.
However, so far, this Southeast Asian country has not been able to raise the tens of billions of dollars needed to build advanced semiconductor manufacturing facilities.
“Vietnam still needs a unified national semiconductor program,” said the National Innovation Center of the Vietnamese government during a semiconductor conference held in Hanoi last Friday, according to a statement.
According to a statement, Nguyen Huy Dung, Deputy Minister of Information and Communications (NIC) of Vietnam, stated during the event, “Vietnam is prepared to expand its semiconductor industry in an unprecedented manner, intending to attract investors into the semiconductor industry through highly favorable mechanisms, including the possibility of offering a 4-year tax exemption.
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