Bac Ninh targets higher value of semiconductor supply chain

HANOI: The northern province of Bac Ninh is seeking to move higher in the semiconductor supply chain by improving infrastructure, skilled labour capacity and policies to attract investment in chip design, research and development (R&D) and core technology.

According to the provincial Department of Science and Technology, Bac Ninh has thus far attracted US$2.74bil worth of investment in 33 semiconductor projects.

This includes six that are involved in semiconductors and semiconductor materials, and 27 producing equipment and components.

Among the major projects is Amkor Technology Vietnam, which has invested US$1.6bil in Yen Phong 2-C Industrial Park and now employs more than 2,000 people.

According to the Department of Science and Technology, the plant is raising capacity to about 3.6 billion products a year.

Amkor Technology’s output in Vietnam has doubled from a year earlier, the company said, adding that it plans to continue expanding its production capacity in Bac Ninh.

Hana Micron Vina is also increasing production in Bac Ninh, with a total investment of US$669mil. The company manufactures, tests and packages semiconductor products.

Other projects include Micro Commercial Components, Synergie Cad, FPT and several companies supplying equipment and components to the semiconductor industry.

Bac Ninh has built a sizeable electronics manufacturing base, with about 1,282 electronics companies employing nearly 482,000 workers.

However, most semiconductor projects in the province are currently concentrated in manufacturing, packaging, testing and supporting industries.

Meanwhile, higher value activities, such as integrated circuit design, R&D and production of core technology and semiconductor materials, remain modest.

Vu Phuong Thao, deputy director of the provincial Department of Finance, said Bac Ninh is still at an early stage of participation in the global semiconductor value chain. — Viet Nam News/ANN