Viet Nam’s semiconductor industry draws much global spotlight

Asia Times assessed that Viet Nam emerged as a new and significant player in the global semiconductor industry. In Viet Nam, highly educated, motivated engineers working at relatively low wages are attracting semiconductor design and packaging companies from the U.S., Germany, Japan, the RoK, and Taiwan.

Similarly, Inteligentcio reported that as one of the world's fastest-growing economies, Viet Nam is positioning itself to become a key player in high-impact sectors such as digital transformation, artificial intelligence, and semiconductor components.

Gabor Fluit, regional director for Asia at De Heus Group, said " Viet Nam expects to attract high-tech, semiconductor, and information technology sectors. There is a strong focus on innovation and high-quality jobs. The fact that many companies are choosing Viet Nam shows that there is a good pool of talent here, but we need to try to make that pool even larger." Viet Nam is undertaking legal and administrative reforms in a bid to boost the development of its semiconductor industry.

Thailand-based Nation newspaper wrote that both Viet Nam, Thailand, and Singapore are all vying to become the region's leading semiconductor manufacturing hub. Vietnam is drafting a new digital technology law, offering a number of incentives to global chipmakers investing in the country.

According to Nikkei Asia, Viet Nam is composing a list of incentives for chip manufacturing companies from tax reductions to expedited export procedures.

Prof. Pankaj Jha of Jindal Global University, India, said "The entire ecosystem related to developing semiconductor and software engineers across Viet Nam is important at this time. The prof suggested Viet Nam should consider and join with semiconductor powerhouses such as Taiwan, Japan, the RoK, and the U.S. to see how they have made chip manufacturing a cornerstone of their economies and learn from their experiences. A concerted effort from both the government and the private sector is needed to create this much-needed ecosystem."

Business Standard said that Viet Nam is striving to shift from labor-intensive industries to high-tech sectors. Viet Nam aims to have 50,000 semiconductor engineers by 2030.

Conquering US$1,000 billion semiconductor market

Gartner predicted that the semiconductor industry will generate US$620 billion in revenue in 2024, soaring to US$1 trillion by 2030.

With the recent issuance of its semiconductor strategy, Viet Nam has set its sights on capturing a significant portion of this massive market.

Keith Strier, senior vice president of AMD, highlighted four critical elements for the development of the semiconductor and AI industries including people, ecosystem, infrastructure, and policies.

As investors seek to diversify their semiconductor supply chains, Viet Nam is well-positioned to benefit from this wave of investment. However, it is clear that significant efforts will be required to achieve its ambitious goals.

Viet Nam's semiconductor industry strategy comprises a three-phase roadmap.

Between 2024-2030, Viet Nam aims to become a global center for semiconductor human resources and establish basic capabilities in research, design, production, packaging, and testing. The semiconductor industry's revenue is expected to exceed US$25 billion per year, with added value reaching 10-15 percent.

Between 2030-2040, Viet Nam will focus on developing the semiconductor and electronics industry through a combination of self-reliance and foreign direct investment (FDI).

In the last phase between 2040-2050, Viet Nam aims to become a leading country in the semiconductor and electronics industry./.