South Korea’s Hana Micron Vina Co., Ltd on Saturday inaugurated a semiconductor plant in Bac Giang province, the first of its kind in northern Vietnam.
The new project, located in Van Trung Industrial Park, is the second Bac Giang-based factory of Hana Micron Vina, which manufactures integrated circuit boards used for mobile phones and other smart electronic products. The first factory came into operation in 2022.
With the second factory, Hana Micron Vina's total investment in Bac Giang has reached nearly $600 million.
Choi Chang Ho, chairman of the company, said Hana Micron Vina plans to increase its total investment to over $1 billion in 2025, generating annual revenues of $800 million and creating 4,000 jobs for Vietnamese workers.
Hana Micron Vina will be the number one production facility in Hana Micron Group's global business operations, and personnel in Vietnam will account for 70% of its total workforce, he said, adding the company's revenue is expected to reach $300 million this year.
The firm will develop a new semiconductor industry ecosystem in Vietnam, contributing to diversifying the types of innovative technology and techniques that the country is pursuing, he noted.
Choi expressed his belief that Vietnam will quickly develop into a key country in the field of advanced industry based on excellent and diligent workforce. Hana Micron Vina will nurture Vietnam's elite young talents to become highly technical human resources in the semiconductor industry, he said.
Vietnam is increasingly becoming an attractive destination for the semiconductor industry. Several investors have expressed their desire to invest in this field in Vietnam.
In addition to Intel with a $1.5 billion plant in Ho Chi Minh City, Amkor Group has built a $1.6 billion project in Bac Ninh province, of which phase 1 is worth $500 million. The giant is preparing to open the factory at the end of this year, with trial operations set to start in October after construction is completed in September.
China's Victory Gain Technology Group also wants to invest in a $400 million semiconductor components project in Bac Ninh, a neighbor of Bac Giang. Meanwhile, Runergy New Energy Science and Technology Group has invested $440 million in the central province of Nghe An to produce semiconductor components, including silicon bars and semiconductor wafers.
With 345 projects, South Korea now ranks first in the number of projects and second in total registered investment capital in Bac Giang province. Korean enterprises create about 25% of the total industrial production value of the FDI sector in the province, which is home to more than 1,200 Korean experts and workers, local official data shows.