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Amkor Technology Announces Plans to Expand Advanced Packaging Technology Capacity with New Factory in Bac Ninh, Vietnam
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Rhea-AI Summary
Amkor Technology, Inc. (NASDAQ: AMKR) announced plans to construct a smart factory in Bac Ninh, Vietnam, focusing on Advanced System in Package (SiP) assembly and testing for leading semiconductor firms. The first construction phase, estimated at $200-$250 million, involves 20,000 square meters and is expected to begin in 2022, with production commencing by late 2023. This investment aims to diversify operations, boost capacity, and meet the growing demand for assembly and test solutions, supported by a strong local labor force.
Positive
Expansion into Bac Ninh, Vietnam, diversifying geographical presence.
Investment of $200-$250 million signals strong financial health.
Factory utilization expected to meet strong market demand.
Negative
None.
TEMPE, Ariz.--(BUSINESS WIRE)--
Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, today announced that it plans to build a state-of-the-art smart factory in Bac Ninh, Vietnam. The first phase of the new factory will focus on providing Advanced System in Package (SiP) assembly and test solutions to the world’s leading semiconductor and electronic manufacturing companies.
“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’s president and chief executive officer. “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 Bac Ninh site, located in the Yen Phong 2C Industrial Park, is approximately 230,000 square meters, or about 57 acres, providing us with room for the first phase and future expansion,” added Rutten. “Construction for the first phase of clean room space, which is currently estimated at 20,000 square meters, is expected to commence in 2022, and high-volume manufacturing is expected to begin by the second half of 2023, based on projected customer product cycles.”
“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,” said Megan Faust, Amkor’s executive vice president and chief financial officer. “Our investment for the first phase of the facility is estimated to be between $200 million and $250 million, and expanding the facility in phases over time will allow us to balance utilization and profitable growth and manage expansion within a reasonable capital intensity range.”
About Amkor Technology, Inc.
Amkor Technology, Inc. is one of the world’s largest providers of outsourced semiconductor packaging and test services. Founded in 1968, Amkor pioneered the outsourcing of IC packaging and test and is now a strategic manufacturing partner for the world’s leading semiconductor companies, foundries and electronics OEMs. Amkor’s operational base includes production facilities, product development centers, and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the USA. For more information, visit www.amkor.com.
Forward-Looking Statement Disclaimer
This press release contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements involve a number of risks, uncertainties, assumptions and other factors that could affect future results and cause actual results and events to differ materially from historical and expected results and those expressed or implied in the forward-looking statements. Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect our operating results and financial condition are discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2020 (the “Form 10-K”) and in the company’s subsequent filings with the Securities and Exchange Commission (“SEC”) made prior to or after the date hereof. You should carefully consider the trends, risks and uncertainties described in this press release, the Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. All forward-looking statements in this press release are made based on our current expectations, forecasts, estimates and assumptions. Amkor undertakes no obligation to review or update any forward-looking statements to reflect events or circumstances occurring after the date of this press release except as may be required by law. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
