[News] South Korean Semiconductor Giants Shift Investments from China to Vietnam Amid U.S. Sanctions

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According to a report from Commercial Times, citing the Chosun Daily, global semiconductor manufacturers are accelerating their withdrawal from China and shifting focus to Vietnam, expecting intensified U.S. sanctions on China’s semiconductor industry following Trump’s returns to the White House, boosting Vietnam’s semiconductor industry.

The report highlights that since the escalation of the U.S.-China tech war in 2022, South Korean semiconductor companies, including Samsung Electronics and SK Hynix, have halted the expansion of their production lines in China and shifted their focus to Vietnam. Recently, the situation has grown even more severe.

In the first quarter of this year, as DRAM demand rebounded, SK Hynix had originally planned to increase DRAM chip production at its Wuxi plant in China from 480,000 wafers per quarter to 570,000 wafers. However, the report notes that this expansion plan has now been shelved. Similarly, Samsung Electronics is set to significantly reduce production capacity at its NAND flash memory plant in Xi’an, China, as mentioned by the report.

The Chosun Daily, citing a report from the Reuters, highlights that South Korea’s OSAT company Hana Micron is expanding its investments in Southeast Asia. Also, Amkor Technology announced last year a USD 1.6 billion investment to construct a 200,000-square-meter plant in Vietnam, which will feature cutting-edge semiconductor packaging technology. Some of the equipment for this new plant was said to be transferred from its facilities in China, while Amkor has not responded to inquiries regarding the equipment transfer, as the report notes.

Following Samsung Display’s establishment of a 2.4 trillion Korean won (approximately USD 1.7 billion) OLED plant in Vietnam, the Chosun Daily indicates that, citing industry sources, Samsung Electronics’ semiconductor division (DS) is expanding its investments in the country. The report mentions that this expansion has also encouraged supporting companies to increase their investments in Vietnam.

Additionally, the report highlights that South Korean semiconductor testing and packaging company Signetics plans to invest USD 100 million to build a facility in the Ba Thien Industrial Park, located in Vinh Phuc Province, Vietnam. Meanwhile, German automotive semiconductor leader Infineon is considering establishing a research and development center in Hanoi.

Read more

• [News] Vietnam Plans to Establish Over 20 Semiconductor Plants
• [News] Vietnam’s Opportunities and Challenges as the Next Semiconductor Hub amid Geopolitical Tensions

(Photo credit: Samsung)