Hana Micron of South Korea plans to invest 1.3 trillion won ($930.49 million) in Vietnam to boost its packaging operations, aligning with client requests to move production out of China.

Foreign companies are increasing their operations in Vietnam’s chip testing and packaging industry, as part of a broader shift away from China due to ongoing Western trade tensions.

Vietnam is emerging quickly in semiconductor back-end manufacturing, which has been traditionally led by China and Taiwan.

United States-based Amkor Technology previously announced a US$1.6 billion investment to build a large facility in Vietnam. Some equipment for this project will be sourced from its Chinese factories.