[News] Samsung OSAT Partner Hana Micron Reportedly Slashes Vietnam Capacity to One-Third

With tariff risks looming and market uncertainties rising, South Korean headquartered OSAT giant Hana Micron has reportedly scaled down its expansion plan in Vietnam. According to The Financial News and Vietnam’s CAFEF, its Bac Ninh plant is seeking approval to cut production capacity by two-thirds.

Citing a proposal Hana Micron Vietnam submitted to Vietnamese authorities to amend its environmental permit, the reports attribute the move to weaker demand, noting that the company has not received large orders from key domestic and international partners, including Samsung.

The reports suggests that Hana Micron has proposed to lower annual output from 300 million to 100 million semiconductor chips—a move that follows an earlier permit granted in October 2024.

Hana Micron, a key OSAT partner to Samsung Electronics and SK hynix, runs two factories in Vietnam—in Bac Ninh and Bac Giang. According to The Financial News, its Bac Ninh plant, established in 2016, manufactures components like smartphone fingerprint sensors.

Hana Micron Vietnam’s cautious approach appears to mirror Samsung’s recent struggles in the country. According to CAFEF, Samsung’s Q1 2025 profit from its four Vietnamese plants plunged 39% to 966 billion won (around 15.5 trillion VND)—marking its weakest first-quarter performance since 2016.

According to Reuters, if the Trump administration’s steep 46% tariff on Vietnamese imports does take effect, the impact could be significant on Samsung’s smartphone business, which primarily relies on production in Vietnam.

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(Photo credit: Hana Micron Vietnam)