S Korean chipmaker Hana Micron to cut capacity at northern Vietnam plant on order shortage

South Korean semiconductor player Hana Micron Vina Co. plans to reduce the initial capacity of its plant in Vietnam’s northern province of Bac Ninh by one-third due to a lack of orders.

In a report, Hana Micron stated that the economic slowdown has led to a shortage of orders from major partners, including Samsung.

As a result, the company seeks to cut the registered capacity of its Bac Ninh factory by one-third to 100 million units per year.

Hana Micron initially invested $11.1 million in Bac Ninh in 2016 and increased its capital to $32.5 million this month. The Bac Ninh plant currently employs 155 workers but will require 180 once it becomes fully operational.

In 2020, Hana Micron inaugurated its first plant in Bac Giang, a neighboring province, and opened a second one there in 2023. The company aims to raise its total investment in Vietnam to over $1 billion by 2025, targeting annual revenues of $800 million and the creation of 4,000 jobs for Vietnamese workers.

Four major factories of Samsung Electronics in Vietnam posted a total profit of KRW966 billion ($689.4 million) in the first quarter of this year, down 39% year-on-year. This was the lowest first-quarter profit recorded by Samsung Electronics Vietnam since 2016, according to the South Korean conglomerate’s Q1 consolidated financial statements.