America’s tech trade war against China’s printed country’s semiconductor industry and better learning when Donald Trump moves back into the White House on January 20. The tensions between the countries mean that more and more foreign investors are fleeing the country and turning their eyes elsewhere, where a neighboring nation with big semiconductor ambitions looks to be a big winner – Vietnam.

Reuters news agency reports from South Korea Hana Micron decided to move planned investments of 1.3 billion South Korean won, equivalent to approximately 930 million USD, to Vietnam. Hana Micron is a semiconductor assembly, testing and packaging company, and the investment in Vietnam is to increase the production of packaging solutions inheritance– memory circuits.

The decision to move the planned investments to Vietnam is confirmed by Hana Micron itself, which told Reuters from the company’s industrial customers expressed that they will part of the production moved from China. Industrial companies like to sit on older electronics platforms for a few decades and then the access is based on compatible memory criteria. In other words, long-term secure access, an increasing trade war unlikely.

In assembly, testing and packaging of circuits, Hana Micron is one of three major players compared to Amkor Technology and Intel, both of which have also chosen to make such investments in Vietnam. All have invested billions of dollars in the country and towards the end of 2023, Amkor Technology went with an effort of 1.6 billion USD for a campus of 200,000 m² for “next generation packaging for semiconductors”. In addition to investments from the trio, US states are expected to place part of the funds from the CHIPS and Science Act in Vietnam.

In addition to well-known players, Vietnam’s domestic semiconductor company is expanding and the country is expected to grow significantly in the short term, especially within package tours. Until 2032, Vietnam expects 8–9 percent of the world’s global capacity for assembly, testing and packaging of circuits, up to only 1 percent by 2022. Recently, the country also launched an ambitious semiconductor plan to become a major global player in the semiconductor industry by 2040–2050.

The fact that Vietnam has become a popular alternative to China can largely be attributed to geopolitics, where the US has a strong interest in forging closer ties with the country. In the US, Vietnam is seen more and more as a potential ally against China, not least when it comes to the territorial disputes in the South China Sea, where China is moving from its positions. Investments from friendly customers waiting to increase, especially in electronics, are therefore no decline.