Amkor Technology, a leading provider of semiconductor packaging and test services, has announced that it plans to build a state-of-the-art smart factory in BacNinh, Vietnam. The first phase of the new factory will focus on providing Advanced System in Package (SiP) assembly and test solutions to the world’s leading semiconductor and electronic manufacturing companies.
“This is a strategic, long-term investment in geographical diversification and factory capacity expansion, supporting the company’s commitment to reliable supply chain solutions for our customers. Factory utilization is high, particularly at our advanced packaging sites, and we expect the strong market demand for assembly and test solutions to continue. Investing in Bac Ninh expands our manufacturing footprint in support of customer need for an alternative cost-competitive supply chain solution for Advanced SiP – and for other packaging solutions in the future,” said Giel Rutten, Amkor’s president and chief executive officer. “Support from Bac Ninh and a strong labor force make Bac Ninh an excellent choice for this expansion, and we expect this new facility to become an important part of our assembly and test network in the future.”
“The Bac Ninh site, located in the Yen Phong 2C Industrial Park, is approximately 230,000 square meters, or about 57 acres, providing us with room for the first phase and future expansion,” added Rutten. “Construction for the first phase of cleanroom space, which is currently estimated at 20,000 square meters, is expected to commence in 2022, and high-volume manufacturing is expected to begin by the second half of 2023, based on projected customer product cycles.”
“We have significantly strengthened our financial position over the past few years, and this puts us in a position to make investments like this using cash on hand,” said Megan Faust, Amkor’s executive vice president and chief financial officer. “Our investment for the first phase of the facility is estimated to be between $200 million and $250 million, and expanding the facility in phases over time will allow us to balance utilization and profitable growth and manage expansion within a reasonable capital intensity range.”