South Korean chipmakers are rapidly shifting semiconductor equipment out of China as concerns mount over potential tighter US restrictions under a second Trump administration.
SK Hynix has scrapped plans to expand production at its Wuxi facility, which currently produces 480,000 DRAM wafers quarterly. Instead, the company will boost capacity at its M14 and M16 plants in Icheon and Cheongju, South Korea. This move is expected to reduce its China-based production from the current 40% share.
Similarly, Samsung Electronics is significantly cutting back planned capacity at its Xi’an NAND flash memory plant. The facility’s targeted quarterly output of 600,000 wafers will be substantially reduced.
The exodus extends beyond Korean firms. Amkor Technology, the world’s largest semiconductor packaging company, is investing $1.6 billion in a 200,000-square-meter advanced packaging facility in Vietnam. The company plans to transfer some equipment from its Chinese operations.
Vietnam is emerging as a key beneficiary of this shift. Local IT giant FPT is investing $30 million in a semiconductor testing facility near Hanoi, with plans to triple capacity by 2026. German chipmaker Infineon is also expanding its Vietnamese presence with a new R&D center focused on automotive semiconductor validation.
