SAMSUNG

South Korean giant leaves China behind and now plans to produce semiconductor components in Vietnam

Sanctions and restrictions on the operation of semiconductor companies in China are forcing foreign manufacturers to seek safe havens. The process of transferring production from China to the least developed countries of Southeast Asia took place earlier, but mainly under pressure from internal factors – due to rising labor costs and the growth of other costs. Sanctions accelerated this trend, and now Samsung plans to produce semiconductor components in Vietnam.

Information about Samsung's intentions was distributed by one of the official websites of the government of Vietnam. Now the company is testing the process of producing chip substrates with BGA matrices – with desoldering pins in the form of miniature solder spheres. This will be done by Samsung Electro-Mechanics Vietnam's factory in the northern province of Thai Nguyen. There is no further information about future products.

It appears that Samsung intends to organize chip packaging and testing in Vietnam. Since 2006, Intel has had similar production in Vietnam. For nearly two decades, this venture has not progressed beyond the relatively simple operations of cutting and packing silicon wafers. Most likely, Samsung will also not risk entrusting Vietnam with processing silicon wafers. For this, Samsung intends to build a factory, for example, in the USA.

Semiconductor manufacturing in Vietnam will be Samsung's third-largest business in the country. Now, the South Korean giant's home appliances and half of Samsung's smartphones are produced there.

Image source: Samsung