Several chipmakers are setting up and expanding their chip testing and packaging facilities in Vietnam, adding a fresh element to the worldwide semiconductor supply chain. South Korean firm Hana Micron has committed a significant sum—around 1.3 trillion won ($930.49 million) by the year 2026—to enhance its operations in Vietnam, focusing mainly on the packaging of legacy memory chips.
Amkor's Big Investment
Amkor Technology is also making waves, investing $1.6 billion into a sprawling 2.16 million-square-foot facility, which is anticipated to be their most advanced packaging plant yet. Rumor has it that some equipment from Amkor's operations in China will be relocated to this new facility in Vietnam.
Intel's Commitment
Intel is making its mark as well, with its largest back-end production site located in Vietnam, showcasing the country’s growing role in chip manufacturing. They even emphasized this at Vietnam’s inaugural international semiconductor expo held near Hanoi.
Local Efforts and Future Goals
Vietnamese companies are not lagging behind. Local tech firm FPT is constructing a 10,764-square-foot testing facility close to Hanoi, with an investment of about $30 million. They plan to start with ten testing machines, with ambitions to increase that number threefold by 2026.
Vietnam's ambitions in the semiconductor sector extend beyond just back-end operations. The state-owned Viettel is gearing up to launch the nation’s first chip foundry, with plans to venture into front-end production by 2030. Additionally, investment group Sovico is looking for global partners to establish an ATP (Assembly, Testing, and Packaging) plant in Danang.
This drive from Vietnam to expand its semiconductor industry aligns with the Biden administration's strategy to diversify the global chip supply chain. Analysts predict that Vietnam's share in global chip assembly, testing, and packaging will grow from one percent in 2022 to approximately nine percent by 2032.
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