Amkor to expand capacity with new factory in Vietnam
Semiconductor packaging and test service provider, Amkor Technology, plans to build a new factory in Bac Ninh, Vietnam. The first phase of the factory will focus on providing System in Package (SiP) assembly and test solutions to semiconductor and electronic manufacturing companies.
Giel Rutten, Amkor’s president and CEO, details the plans in a press release saying that the Bac Ninh site is approximately 230,000 square meters, and will provide the company with room for the first phase and future expansion. The company plans to start construction of the first phase of clean room space – currently estimated at 20’000 square metres – sometime next year, and high-volume manufacturing to start by the second half of 2023. “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, in the press release. “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 company estimates that the investment in the first phase of the facility to be between USD 200 million and USD 250 million. “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,” says Megan Faust, Amkor’s executive vice president and CFO. She continues to say that expanding the facility in phases over time will allow the company to balance utilisation and profitable growth and thus manage expansion within a “reasonable capital intensity range”.