HANMI Semiconductor, a semiconductor equipment company, announced on the 31st that it has officially opened a global branch office ‘HANMI Vietnam’ in Bac Ninh, Vietnam, which is a upstart new production base for major global semiconductor companies.

Vietnam is receiving attention as an investment destination for global semiconductor companies, along with evaluation that it is possible to form a stable value chain as the U.S ? China trade conflict continues. It has advantages like stable politics, low labor costs, abundant human resources and geological advantages of high accessibility to high- tech supply chains in Asia.

DS Kwak, vice chairman of HANMI Semiconductor, said, “The global branch office, HANMI Vietnam, will provide close services to customers in Vietnam through sales and service engineer experts”, and emphasized, “We established the office to actively target the increasingly important Vietnamese market”

The largest foreign investment company in Vietnam is Samsung Electronics Co Ltd, which has invested a total of $20 billion, starting with $1.3 billion in 2013. Last year, Samsung Electronics Co Ltd announced a total investment plan of $2.27 billion to expand its next-generation semiconductor substrate (FC-BGA) business.

Intel Co. is also considering an additional investment of $1 billion from $1.5 billion previously announced in Ho Chi Minh City, Vietnam. Its factory in Vietnam, is Intel’s largest production base accounting for 70% of Intel’s global production.

Amkor Technology has invested more than $1.6 billion in Bac Ninh Province in northern Vietnam and is preparing to operate its factories at the end of this year. HANA Micron Inc. also plans to increase the number of Vietnamese factory workers to 3,000 by 2025, as Vietnam is a major overseas production base. Vietnam is currently emerging as an important hub in the global semiconductor market, with Taiwan’s USI establishing a factory in Haiphong, Vietnam in 2021, and China’s Luxshare also expanding its plant after establishing it in 2017.