[News] Samsung Reportedly Bets on Vietnam with $4B Chip Packaging Push; Amkor Expands Presence
Semiconductor giants are accelerating global advanced packaging expansion as demand for AI chips surges, with Southeast Asia emerging as one of the most sought-after hubs. While Intel is set to bring its advanced packaging facility in Malaysia online later this year, Bloomberg reports that Samsung is also preparing a major push in Vietnam, planning a US$4 billion (RM15.93 billion) investment to build a chip packaging plant in the country’s north.
Notably, Global Economic News, citing Vietnamese outlet Soha, reports that another chip packaging player, Amkor Technology, is also accelerating the expansion in Vietnam, while working with local authorities to develop plans and policies prioritizing liquefied petroleum gas (LPG) supply to semiconductor facilities in the event of future energy shortages.
Samsung Mulls Multi-Phase Expansion Plan
According to Bloomberg, Samsung’s project will roll out in multiple phases in Thai Nguyen province, starting with an initial US$2 billion commitment.
Reuters adds that Vietnam’s Finance Ministry is working in tandem with agencies to finalize and submit to the Prime Minister a memorandum of understanding (MoU) with Samsung covering the group’s proposed semiconductor manufacturing project in the country, according to an official statement.
Separately, a source familiar with Samsung’s Vietnam strategy told Reuters the company has long signaled its intent to establish a semiconductor footprint in the market, though specifics on timing and investment scale remain undisclosed.
As explained by Bloomberg, Samsung first established operations in Bac Ninh in 2008, laying the groundwork for its manufacturing footprint. Since then, Vietnam has grown into Samsung’s largest global smartphone production hub, further reinforced by a major handset plant in Thai Nguyen launched in 2013, the report notes.
Amkor Accelerates Vietnam Expansion, Raises Three Key Policy Requests
On the other hand, Amkor is speeding up the expansion of its production lines in Vietnam, leveraging what it describes as the world’s largest advanced semiconductor packaging facility in Bac Ninh province. Global Economics News reports that the U.S.-headquartered company, which also operates major manufacturing bases in South Korea, has invested a total of US$1.6 billion since 2021 to build a state-of-the-art OSAT facility at the Yen Phong 2C Industrial Park in Bac Ninh.
The report, citing Soha, notes that Kim Sung-hoon, general director of Amkor Technology Vietnam, recently met with the Secretary of the Bac Ninh Provincial Party Committee, where he outlined three key policy proposals for future production expansion.
Among them, Kim urged authorities to establish concrete measures prioritizing liquefied petroleum gas (LPG) supply to semiconductor facilities, pointing to the risk of global energy disruptions amid rising geopolitical tensions, including potential conflict scenarios involving Iran, according to the report.
Kim also proposed the introduction of a mechanism to directly subsidize around 3% of investment capital, aimed at enhancing competitiveness in the global semiconductor industry, Global Economic News reports.
In addition, he urged stronger practical support measures—including housing and welfare initiatives—to help attract and retain highly skilled engineers in the sector over the long term, the report adds.
The expansion underscores Vietnam’s growing role in the semiconductor back-end supply chain, with Amkor’s push—alongside peers such as Samsung Electronics—expected to further accelerate the expansion of Korean semiconductor back-end equipment and materials players into the country, Global Economics News notes.
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(Photo credit: Samsung)
