Amkor invested 1.6 billion USD in Bac Ninh to produce semiconductor materials
The decision to invest in a $1.6 billion project to produce semiconductor materials in Bac Ninh by Amkor Technology, Inc (USA) is opening up great opportunities for Vietnam in attracting investment in this field.
Amkor’s “push” for Vietnam’s semiconductor industry
The Provincial People’s Committee and Amkor Technology, Inc (the USA) signed an agreement over the weekend to develop the project of a Semiconductor Manufacturing, Assembly, and Testing Factory at Yen Phong Industrial Park II-C.
The project will be built over an area of approximately 23 hectares, with a total investment capital of 1.6 billion USD by 2035. In the first phase, investment capital of about 520 million USD will be disbursed within 5 years of issuing the investment registration certificate. The project is anticipated to begin in the first quarter of 2022, with the initial phase focusing on offering innovative System-in-Package (SiP) assembly and testing solutions to the world’s top electronics and semiconductor manufacturing businesses.
Mr. Jonggrip Ji, Chairman of Amkor said that Amkor will focus on speeding up phase I of the factory in Bac Ninh to be mass-produced from 2023. To prepare for the project implementation, Amkor also signed a land lease contract with Viglacera Corporation, the investor of the infrastructure of Yen Phong Industrial Park.
Although it is only the initial agreement, this move shows positive signals from the Project.
Opportunities for Vietnam’s semiconductor industry
Ms. Dao Hong Lan, Secretary of Bac Ninh Provincial Party Committee also said that attracting investment projects with a large amount of capital in the context of the Covid-19 epidemic has affirmed the determination and prestige of Bac Ninh province to foreign investors. This project will create a premise for Bac Ninh province to appear on the world map of semiconductor manufacturing.
Amkor is a pioneer in the processing, testing and packaging of electronic circuits and is currently a strategic manufacturing partner for many major global technology corporations. Both Samsung and Apple are customers of this company. Therefore, Amkor’s presence in Vietnam will certainly receive great attention from the world investor community, especially in the field of the semiconductor industry, an undeveloped industry in Vietnam.
Currently, Intel, which is in Ho Chi Minh City, is planning to expand its investment. In addition, there are smaller-scale projects such as Renesas, Applied Micro, Splendid, Sonion, etc. The positive news is that earlier this year, Intel decided to invest another USD 475 million in Vietnam, after the first project 1 billion USD. Even Intel has planned to invest in phase II with a scale of over 2 billion USD.
The semiconductor industry is regarded as one of the world’s leading industries by several countries. Covid-19 has resulted in a severe scarcity of semiconductor supplies, providing a chance to construct large-scale semiconductor projects. Can Vietnam serve as a “station” for these initiatives?