Samsung Faces Setback as Hana Micron Seeks to Downsize Registered Capacity in Bac Giang to a Third

In its report, Hana Micron Vietnam attributes the proposed downsizing to economic hardships, resulting in a lack of substantial orders from key domestic and international partners, notably Samsung. Consequently, their maximum production capacity stands at one-third of the registered capacity, amounting to 300 million integrated circuits per year, equivalent to 36 tons, alongside other products.

The company seeks environmental permits for this reduced capacity of 100 million products per year, which is a third of the capacity mentioned in the approved EIA report per Decision No. 3401/QD-BTNMT dated October 23, 2024. Hana Micron also requests permission to continue operating their 300 m3/day wastewater treatment system and postpones the construction of the 1,000 m3/day treatment system.

Hana Micron’s initial investment of 11.1 million USD in June 2016 has witnessed increments, reaching 32.5 million USD as of the latest (eighth) adjustment in May 2025, reflecting a 2.5 million USD increase from the seventh change.

The company currently employs 155 workers but anticipates a requirement for 180 personnel upon stabilization of operations.

Established in 2001, Hana Micron is a South Korean company specializing in semiconductors. Between its inception and 2010, the company primarily focused on contract manufacturing for Samsung and SK Hynix in South Korea, garnering multiple accolades for its excellence in this domain.

Hana Micron’s expansion beyond South Korea commenced with the establishment of Hana Micron America in 2006. A decade later, in 2016, the company ventured into Vietnam, marking its presence through the formation of a subsidiary.

Following their foray into Bac Ninh, Hana Micron’s first factory in Bac Giang commenced operations in 2020. In September 2023, the inauguration of their second factory in the same province signaled their commitment to increasing total investment to over 1 billion USD.

As of January 2025, 354 enterprises in Bac Giang province engaged in merchandise exports, collectively achieving a turnover of over 3 billion USD. Among them were foreign-invested companies, including Hana Micron, which registered an export turnover of 370 million USD during this period.

Samsung, a prominent chaebol in South Korea, reported a 39% decline in profits for the first quarter of 2025, totaling 966 billion won (15,524 billion VND) from its four factories in Vietnam. This figure marks the lowest first-quarter profit since Samsung’s establishment in Vietnam in 2016.

The four primary Samsung factories in Vietnam include Samsung Thai Nguyen (SEVT), Samsung Bac Ninh (SEV), Samsung Display Vietnam (SDV) in Bac Ninh, and Samsung Electronics HCMC CE Complex (SEHC) in Ho Chi Minh City.