Chipmaker Amkor Technology targets mass production in Vietnam this year

The U.S.-headquartered Amkor Technology Inc. churned out the first products from its factory in Vietnam’s Bac Ninh province in December 2023 and expects to start mass production in 2024, said Kim Sung Hun, CEO of Amkor Technology Vietnam.

The executive made the statement at a Thursday meeting with Nguyen Anh Tuan, chief of the provincial Party Committee. He also proposed provincial authorities provide further support for the factory’s operation.

For his part, Tuan lauded Amkor’s first products as a milestone for Bac Ninh as it officially marked the first semiconductor components produced in the province for the global market. While 2023 was a harsh year for Bac Ninh, Amkor’s inauguration and production was a bright spot for the province, Tuan added.

He also called on Amkor to attract more semiconductor businesses from the U.S. and South Korea to invest in Bac Ninh in order to build a semiconductor ecosystem in the province, with Amkor playing a key role.

Bac Ninh province will provide the best conditions for the operation of Amkor, the provincial leader affirmed.

Bac Ninh was among the worst industrial performers in Vietnam in 2023 as its index of industrial production (IIP) fell 11.2% year-on-year, according to the General Statistics Office. Meanwhile, Vietnam’s IIP rose 1.5% last year.

In October 2023, Amkor Technology Inc., a leading provider of semiconductor packaging and test services, held a grand opening for its newest factory located in Bac Ninh province. The facility covers 23.1 hectares at Yen Phong 2C Industrial Park. Beginning with Advanced System in Package (SiP) and memory production, the factory will offer turnkey solutions from design to electrical testing.

Amkor has committed $1.6 billion for the project’s two phases, including $520 million in phase 1 to develop its most advanced facility, delivering next-generation semiconductor packaging capabilities.

Amkor's factory is the second semiconductor facility in the northern region, following the first inaugurated in September by South Korea-invested Hana Micron Vina Co., Ltd in nearby Bac Giang province.