Takeaways from the Grow Globally: Amkor Technology and Bac Ninh Province investment roundtable
On September 27 at the Thunderbird School of Global Management, I attended the Grow Globally: Amkor Technology and Bac Ninh Province investment roundtable. During the two hour seminar, representatives from the Bac Ninh province made a case for why American companies should consider the region for their advanced manufacturing facilities, spotlighting its pro-business government, infrastructure, labor, and cost advantages.
I attended this event to gain a stronger understanding of why so many technology companies are choosing Bac Ninh for their new facilities, including our 3D InCites member company, Amkor Technologies.
In the first seven months of 2024, Bac Ninh has already generated an impressive $3.2 billion in foreign direct investment (FDI). Kevin Engel, EVP and head of business units, Amkor, highlighted the company’s success in the province since opening a $1.6 billion facility in 2023. Amkor is one of Bac Ninh’s primary investor companies.
Engel shared that building the Bac Ninh factory was a strategic decision, noting advantages like cost dynamics and ease of business within the region. He also emphasized the local government’s continued support and commitment to innovation.
“Countries that continue to build, scale, and innovate, are the ones that succeed long term,” he said.
Bac Ninh as an Emerging Manufacturing Powerhouse
So, what is it about Bac Ninh that meets Engel’s definition for a successful, long-term investment region?
With a gross regional domestic product (GRDP) of 8-9%, Bac Ninh’s stable economic growth is capturing the attention of corporations across the world. Access to a skilled labor force, its commitment to a pro-business government, tax incentives, ample power sources, access to raw materials for chip manufacturing, and housing for 231,000 employees, also play a critical role in the province’s growth.
Like Amkor, several other global companies have made major investments in the region, including Google, Nvidia, Samsung, Cannon, Hitachi, and more. These investments enabled Bac Ninh to boast the largest volume of manufacturing centers within the country.
Even though partnerships between Vietnam and the United States have strengthened in recent years, the two countries have worked well together for the last several decades. Next year, the countries will celebrate 30 years of partnership. During that time, the US has also consistently ranked as a top export destination for Vietnam.
Amkor’s Bac Ninh Factory – A Real-World Success Story
Since opening nearly one year ago, Amkor’s Bac Ninh factory has already become its most advanced facility to-date. Focusing on advanced systems in package (SiP) and memory, the factory is integral for assembly and test in the areas of artificial intelligence (AI), high performance computing (HPC), 5G, and more.
Amkor’s Bac Ninh factory sits on 57 acres within the Yen Phong 2C Industrial Park, including 200,000 square meters of cleanroom space. The company has currently invested $1.6 billion into the factory for machinery, equipment, and facility costs. A big reason for this investment, Engel said, is Bac Ninh’s unwavering dedication to Amkor.
Nguyen Anh Tuan, a senior leader representing the Bac Ninh province, emphasized this commitment, sharing that Bac Ninh provides 24/7 hands-on support for its investor companies.
“When the government views your challenges as its own challenges, there’s nothing we can’t overcome,” Anh Tuan said.
How will semiconductor industry partnerships between the US and Bac Ninh unfold within the next several years? So far, the future looks bright.
