Hana Micron, a major business in South Korea’s semiconductor industry, plans to pour US$1 billion into chip production in Vietnam by 2025, according to both local and regional media.
The South Korean manufacturer of chip packaging and memory products told Nikkei it is moving equipment to its new, second factory in Bac Giang Province, located in northern Vietnam.
The new factory, spanning an area of over six hectares, was inaugurated in the Van Trung Industrial Park on September 16.
The first factory, put into operation in neighboring Bac Ninh Province in 2017, specializes in producing integrated circuit (IC) boards used in mobile phones and other smart electronic devices.
During the inauguration ceremony of the second factory, Hana Micron chairman Choi Chang Ho said the group plans to raise its investment to over $1 billion by 2025.
At that time, the factory is set to gain $800 million in revenue and create over 4,000 jobs, according to the Vietnam News Agency.
“Hana Micron’s Bac Giang project plays a key role in the socioeconomic development of the region and ... follows the development direction of the government,” human resource manager Hwang Chul Min told Nikkei.
“It will create opportunities to attract more high-tech projects and lay the foundation for the development of the semiconductor production ecosystem.”
Bac Giang hosts three Apple suppliers and, together with Bac Ninh, is known for making the bulk of Samsung phones globally.
According to the Bac Giang authorities’ website, another semiconductor factory invested in by Taiwan will start operations there in 2024.