Amkor Technology seeks LPG priority for semiconductor plant

Amkor Technology seeks LPG priority for semiconductor plant

The semiconductor packaging and test services provider Amkor Technology urged Vietnam’s northern province of Bac Ninh to prioritise usage of liquefied petroleum gas for a semiconductor factory.

Amkor Technology seeks LPG priority for semiconductor plant

Kim Sung Hun, CEO of the group’s subsidiary Amkor Technology Vietnam, requested a meeting on April 6 with Bac Ninh authorities.

Liquefied petroleum gas (LPG) is emerging as a critical contingency fuel for semiconductor factories facing energy shortages, specifically as a reliable backup to power production facilities when electricity grids or natural gas supplies are disrupted.

The semiconductor industry, which requires massive, uninterrupted power for advanced wafer fabrication, is increasingly exploring LPG to prevent high-cost production shutdowns during energy crises, such as those impacting Asia in March-April 2026.

Hun also suggested that Vietnam should provide support at 3 per cent of the capital investment for semiconductors to boost production sustainability and efficiency.

Besides that, the company expects the local authorities to help train and retain talent for the sector.

Nguyen Hong Thai, Secretary of Bac Ninh Party Committee said, “We will instruct the provincial people's committee and relevant departments and agencies to consider and resolve them within their authority, with the view that the province always accompanies and effectively supports businesses investing in the province, and the success of the business is also the success of the province.”

“The provincial people's committee will host a specific working session with the company; for issues beyond its authority, the provincial leadership commits to closely coordinate with relevant ministries and agencies to advise and submit them to the government for consideration and resolution in accordance with regulations, ensuring a balance of interests for the business,” he said.

Amkor Technology opened its factory in Bac Ninh in October 2023. The factory, covering 23 hectares at Yen Phong 2C Industrial Park, offers turnkey solutions from design to electrical testing.

The venture had an initial investment of $530 million. In July 2024, Amkor received an investment certificate for additional investments of $1.07 billion, 11 years earlier than its original plan. The plant has an annual capacity of 420 million items, while Amkor is seeking permission to increase the output to 3.6 billion items annually.

Vietnam’s semiconductor industry has so far recorded foreign direct investment of $14.2 billion across 241 projects, according to the government. The country now has 166 universities offering semiconductor-related courses, enrolling 134,000 students annually.

VIR