[News] Vietnam’s Semiconductor Packaging & Testing Industry Picks up Steam

Phase II of CT Semiconductor’s Packaging and Testing Plant Underway

As per Vietnam’s published semiconductor development strategy, the country has set specific goals for 2030 and 2050. By 2030, Vietnam aims to establish at least 100 chip design companies, one small-scale semiconductor manufacturing plant, and ten packaging and testing factories. The target is for the semiconductor industry to generate over USD 25 billion in annual revenue, and the electronics sector to achieve over USD 225 billion. By 2050, the goal is to have at least 300 chip design companies, three semiconductor manufacturing plants, and twenty packaging and testing facilities, with the semiconductor industry expected to deliver an annual revenue of more than USD100 billion.

The plan incorporates both foreign-funded and domestic factory development. On the domestic side, it’s reported that CT Semiconductor, a subsidiary of Vietnam’s CT Group, has begun construction on Phase II of its semiconductor packaging and testing plant in Thuan An City, Binh Duong Province. The plant is scheduled to begin operations in 4Q25 and aims to produce 100 million chips annually by 2027.

The investment for this plant is estimated to approach USD 100 million, covering cleanroom infrastructure, equipment, and smart factory systems. Industry insiders note that this fully self-developed plant marks Vietnam’s first wholly-owned OSAT enterprise and signifies a major step forward in the country’s move toward technological self-sufficiency in assembly, testing, and packaging (ATP).

Amkor Accelerates Expansion of Vietnam OSAT Facility

In view of its strategic location, Vietnam has attracted several major semiconductor companies in recent years.

In the packaging and testing field, Samsung Electronics has announced the construction of a high-performance FC-BGA substrate production line in Thai Nguyen Province in northern Vietnam. Intel’s packaging and testing plant in Ho Chi Minh City, staffed with 2,700 employees, is its largest backend production site globally. Amkor Technology has invested USD 1.6 billion to build the world’s largest OSAT facility in Bac Ninh Province, Vietnam.

Amkor’s Vietnam facility focuses on system-in-package (SiP) and advanced testing technologies to meet growing demand for AI chips, HBM, and similar products. The plant is set to begin operations in Q3 2024. Latest updates show that Amkor has identified Vietnam as its “growth engine for the next decade” and is accelerating the expansion of its Bac Ninh OSAT facility.

Bac Ninh Province serves as a core area for Vietnam’s semiconductor industry. The establishment of Amkor’s facility has attracted numerous upstream and downstream companies, and industry experts project the formation of a USD 7 billion semiconductor industrial cluster in the region by 2028.

(Photo credit: CT Semiconductor)