US-based IC backend house Amkor Technology is advancing its US$1.6 billion factory in Bac Ninh, Vietnam. However, it expects much fewer employees to be required for the facility inaugurated in October 2023.
According to The Investor, Amkor Technology is progressing with its US$1.6 billion project in Vietnam, with an expected labor requirement of 2,800 workers once stable operations are achieved. This figure contrasts sharply with the 10,000 employees projected during the factory's inauguration in October 2023. Currently, the Bac Ninh factory employs 1,190 workers.
The project's initial investment was US$529.6 million, supplemented by an additional US$1.07 billion received in July— a full 11 years ahead of the originally planned 2035 investment timeline. The plant's two-phase development envisions an annual output of up to 1.2 billion chips once fully operational.
With the first phase operational at 70% capacity and the second phase moving towards full operations by September 2025, Amkor's electricity consumption is anticipated to surge from 4.51 million kWh to 15 million kWh per month during stable operations. To accommodate this growth, the company seeks approval to boost its capacity to 100% for the first phase and 25% for the second phase, targeting an output of 900 million items or 315 tons.
Amkor's Bac Ninh plant, encompassing 57 acres, is situated in the Yen Phong 2C Industrial Park and commenced operations in October 2024. It's primarily engaged in system-in-package (SiP) manufacturing. It provides a comprehensive solution from design to testing for leading global semiconductor and electronics manufacturers.
Amkor's president and CEO, Giel Rutten, expressed that the Bac Ninh facility is instrumental in supporting global and regional supply chains. He highlighted Vietnam's combination of a skilled workforce, strategic geographical location, and government support as critical factors that will facilitate Amkor's continued growth. The company aims to establish a long-term, mutually beneficial partnership with Vietnam.
Vietnam's semiconductor industry is witnessing significant investment in the IC backend business from multinational corporations amid global supply chain relocation. In addition to Amkor, Intel maintains a major assembly and testing facility in the country, while Samsung is expanding its semiconductor production capabilities.
Additional significant investments include Foxconn Circuit Precision's construction of a US$383.33 million facility in Nam Son-Hap Linh Industrial Park. Furthermore, Dutch company BE Semiconductor Industries has invested more than VND115 billion (approx.US$4.9 million) in a new project at Saigon Hi-tech Park, set to commence operations in early 2025.
