Hanoi (VNA) - The Viglacera Real Estate Company and AmkorTechnology, Inc., one of the world's largest providers of outsourcedsemiconductor packaging, design, and test services, have recently signed acontract in principle to lease land to build a project for manufacturing,assembling and testing semiconductor materials at Yen Phong II-C IndustrialPark in the northern province of Bac Ninh.

Accordingly, Amkor Technology will invest 1.6 billion USD betweennow and 2035 to build a plant to manufacture, assemble and test semiconductorproducts on a site of 23ha in the IP.

Construction of the project is expected to begin in thefirst quarter of next year.

The first phase of the project will focus on the production,assembly and testing of semiconductor materials for the world's leadingsemiconductor and electronic manufacturing companies.

“This is a strategic, long-term investment in geographicaldiversification and factory capacity expansion, supporting the company’s commitmentto reliable supply chain solutions for our customers. Factory utilization ishigh, particularly at our advanced packaging sites, and we expect the strongmarket demand for assembly and test solutions to continue. Investing in BacNinh expands our manufacturing footprint in support of customer need for analternative cost-competitive supply chain solution for Advanced System inPackage (SiP) – and for other packaging solutions in the future,” GielRutten, Amkor’s President and Chief Executive Officer, said in a press statement.

“Support from Bac Ninhand a strong labour force make Bac Ninh an excellent choice for this expansion,and we expect this new facility to become an important part of our assembly andtest network in the future,” he said.

Established in 1968, with headquarters in Arizona, the US,and 17 factories in China, Japan, the Republic of Korea, Malaysia, the Philippines,Portugal and Taiwan (China), Amkor Technology, Inc. is considered one of theworld's largest manufacturers, assemblers and testers of semiconductormaterials, and is currently a strategic manufacturing partner for the world'sleading chip companies, chip foundries and microchips such as Qualcomm,Samsung, NVIDIA, Foxconn, Broadcom, LG, and SK Hynix./.