The U.S.-based Amkor Technology Inc., a leading provider of semiconductor packaging and test services, held a grand opening for its newest factory in Vietnam’s northern province of Bac Ninh on Wednesday.
The Vietnamese facility is set to become Amkor’s most extensive facility, covering 57 acres (23.1 hectares) in 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 two phases of the project, including $520 million in the first phase, to develop the facility into Amkor’s most advanced, delivering next-generation semiconductor packaging capabilities.
“This state-of-the-art factory in Vietnam will help Amkor provide an unrivaled geographic footprint to our customers, supporting global but also enabling regional supply chains,” said Giel Rutten, Amkor’s president and CEO.
“It’s the kind of secure and reliable supply chain our customers need in communications, automotive, high-performance computing, and other key industries,” the executive added.
According to the investment certificate granted to Amkor in December 2021, the factory’s output will be 600 million items a year, equivalent to 210 tons, in the first phase. The second phase will double that output.
Bac Ninh province's index of industrial production (IIP) went up 2.38% from August to September, according to provincial data. Notably, the province's IIP inched up 0.01% from September 2022 to September 2023 after decreases in the previous eight months. However, from January-September, the province's IIP fell 13.82% year-on-year.
Bac Ninh province, home to two Samsung factories, attracted $860.9 million in foreign direct investment (FDI) from 264 projects in the first nine months of 2023, up 510% year-on-year in terms of capital and 310% regarding project number, according to provincial data.