vietnam’s Semiconductor Industry: A rising Powerhouse in the Global Tech Ecosystem
Vietnam is rapidly emerging as a key player in the global semiconductor industry, leveraging its skilled workforce, strategic investments, adn favorable buisness environment. With a dynamic ecosystem that spans chip design, testing, and encapsulation, the country is positioning itself as a preferred destination for global tech giants and investors alike.
A Visionary Leap Forward
Table of Contents
- Vietnam’s Semiconductor Industry: A Rising Star in the Global Supply Chain
- A Growing Hub for semiconductor Investments
- The Semiconductor Value Chain: Vietnam’s Strategic Focus
- A Roadmap for Success
- Local and Global Players Driving Growth
- Key Highlights at a Glance
- A Bright Future Ahead
- A Thriving Ecosystem for Semiconductor Growth
- strategic Partnerships and trade Agreements
- Government Support and Strategic Priorities
- A Look ahead
- Key Highlights of Vietnam’s Semiconductor industry
- Vietnam’s Semiconductor Strategy: A Four-Pronged Approach
- A Roadmap for Success
- Local and Global Players Driving Growth
- Key Highlights at a Glance
- A Thriving Ecosystem for Semiconductor Growth
- Strategic partnerships and Trade Agreements
- A Radiant Future Ahead
Two decades ago, Vietnam’s semiconductor industry was in its infancy. However, the establishment of Japan’s Renesas, a major semiconductor manufacturer, marked the beginning of a transformative journey. Today, Vietnam hosts a thriving ecosystem of global leaders, including Global Unichip, Faraday Technology, Microchip, Marvell, Synopsys, and qorvo. These companies have set up operations in the country, drawn by its competitive advantages and strategic location.
Vietnam’s appeal lies in its ability to attract global technology giants like Intel, Samsung, and Hana Micron, wich have established factories in the country. These investments have solidified Vietnam’s reputation as a hub for the “assembly, test, and encapsulation” segment of the semiconductor value chain.
A Skilled workforce and Strategic Assets
One of Vietnam’s most significant assets is its highly skilled workforce. the country is the world’s second-largest supplier of software engineers, a fact that underscores its growing influence in the tech sector. Jensen Huang, founder and CEO of NVIDIA, highlights Vietnam’s strengths, stating, “the country benefits from considerable assets, including family values and a priority given to education.”
In addition to its human capital, Vietnam boasts the world’s second-largest reserve of rare earths, a critical resource for semiconductor production. This,combined with a business-friendly environment,has made the country a magnet for investors seeking to diversify thier supply chains amid global geopolitical complexities.
Goverment Support and Strategic Vision
The vietnamese government has played a pivotal role in fostering the growth of the semiconductor industry.On December 14, 2024, Prime Minister Pham Minh Chinh chaired the first meeting of the National steering Committee for the Development of the Semiconductor Industry, emphasizing the sector’s importance to the nation’s economic future.
Vietnam’s commitment to innovation is further evidenced by its rise in the 2024 Global Innovation Index (GII), where it climbed two spots to rank 44th among 133 economies. This progress reflects the country’s efforts to create a conducive environment for technological advancement and industrial growth.
A Thriving Ecosystem
Vietnam’s semiconductor ecosystem is thriving, with over 50 companies specializing in chip design and employing approximately 6,000 engineers. The “testing and encapsulation” segment includes seven factories, supported by 6,000 engineers and more than 10,000 technicians. Companies like Samsung, Seojin, and Coherent have also established operations in the country, further bolstering its position in the global supply chain.
Key Highlights of Vietnam’s Semiconductor Industry
| Aspect | Details |
|—————————|—————————————————————————–|
| Chip Design Companies | Over 50 companies with 6,000 engineers |
| Testing & Encapsulation | 7 factories, 6,000 engineers, and 10,000 technicians |
| Global Investors | Intel, Samsung, hana micron, Renesas, NVIDIA, and more |
| Rare Earth Reserves | Second-largest in the world |
| Global innovation Rank | 44th in the 2024 Global Innovation Index |
The Road Ahead
Vietnam’s semiconductor industry is poised for continued growth, driven by its skilled workforce, strategic investments, and government support. As global supply chains evolve, the country is well-positioned to become a leading player in the semiconductor sector, contributing to the advancement of technology worldwide.
For more insights into Vietnam’s semiconductor ambitions, explore the policy perspectives shaping this dynamic industry.
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Photo credits: VNA/CVN
Vietnam’s Semiconductor Industry: A Rising Star in the Global Supply Chain
Vietnam is rapidly emerging as a key player in the global semiconductor industry,with ambitious plans to develop its entire value chain. The country’s strategic investments, infrastructure development, and partnerships with global tech giants are positioning it as a reliable destination for semiconductor production and innovation.
A Growing Hub for semiconductor Investments
Vietnam currently hosts 174 foreign direct investment (FDI) projects in the semiconductor sector, with a total registered capital of nearly USD 11.6 billion. This influx of investment is driving significant growth, with industry revenues expected to reach USD 6.16 billion in 2024, up from USD 5.58 billion in 2023.
To support this growth, Vietnam has established the National Innovation Centre (NIC) and developed high-tech parks in key regions like Hanoi, Da Nang, and Ho Chi Minh City. These hubs, along with numerous standard industrial parks, are designed to attract global technology giants and foster innovation.
The Semiconductor Value Chain: Vietnam’s Strategic Focus
In the semiconductor value chain, design remains the highest value-added stage, requiring advanced technical skills and modern infrastructure. While Vietnam is currently competitive in the “testing and encapsulation” segment,the country has unveiled its first Semiconductor Industry development Strategy in September 2024. This strategy aims to develop the entire value chain in phases, with a focus on specialized chips for strategic applications like AI and the Internet of Things (IoT).
The strategy is built on the formula C = SET + 1, where:
- C stands for “Chips,”
- S for “Specialization,”
- E for “Electronics,”
- T for “Talent,”
- and +1 represents Vietnam as a new reliable destination for global supply chains.
This approach is broken down into four main axes:
- Specialized Chip Production: Focusing on chips for AI and IoT.
- Electronics Industry Development: Meeting the growing demand for semiconductors.
- Talent Development: Training highly qualified human resources in chip design.
- global Supply Chain integration: Attracting foreign investment and strengthening Vietnam’s position in the sector.
A Roadmap for Success
Vietnam’s semiconductor strategy is divided into three phases:
- 2024-2030: Host at least 100 design companies, establish a small foundry, and attract 10 testing and encapsulation companies.
- 2030-2040: Expand capabilities and infrastructure.
- 2040-2050: Achieve self-sufficiency and global leadership in key segments.
Local and Global Players Driving Growth
Vietnam’s semiconductor industry is being propelled by both local pioneers and global giants.
Local Leaders
- FPT Technological group: Has launched semiconductors for iot applications in agriculture and healthcare.
- Viettel: Developed chips for 5G devices and aims to achieve self-sufficiency in production and packaging.
Global Partners
- South Korea: Companies like Samsung, Hanmi Semiconductor, and Hana Micron Vina have invested in substrate and packaging production.
- United States: Intel and Amkor Technology have established assembly and testing facilities.
- Multinational Presence: Tech giants like Apple, Dell, Meta, Qualcomm, Texas Instruments, Xiaomi, and their suppliers, including BYD, Foxconn, and GoerTek, are actively investing in Vietnam.
Key Highlights at a Glance
| Aspect | Details |
|————————–|—————————————————————————–|
| FDI Projects | 174 projects, USD 11.6 billion registered capital |
| 2024 Revenue | USD 6.16 billion (up from USD 5.58 billion in 2023) |
| Strategic Focus | Specialized chips for AI and IoT, electronics development, talent training |
| Key Players | FPT, Viettel, Samsung, Intel, Apple, Qualcomm, Xiaomi |
| Infrastructure | NIC, high-tech parks in Hanoi, Da Nang, Ho Chi Minh City |
A Bright Future Ahead
Vietnam’s semiconductor industry is on a trajectory to become a global powerhouse. With its strategic roadmap, robust infrastructure, and partnerships with leading tech companies, the country is well-positioned to meet the growing demand for semiconductors and secure its place in the global supply chain.
As Vietnam continues to innovate and attract investment, it is poised to play a pivotal role in shaping the future of the semiconductor industry.
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For more insights into vietnam’s tech advancements, explore how the country is leveraging its National Innovation Center to drive innovation.Vietnam’s Semiconductor Industry: A Rising Powerhouse in Global Tech Supply Chains
Vietnam is rapidly emerging as a key player in the global semiconductor industry, driven by its strategic focus on digital conversion and innovation. With a dynamic market expected to surpass USD 6.16 billion in 2024, the country is positioning itself as a regional leader in technology and innovation, attracting major international investments and partnerships.
A Thriving Ecosystem for Semiconductor Growth
The semiconductor industry in Vietnam is thriving, thanks to a combination of favorable factors. The country boasts a young, tech-savvy workforce, tax incentives, and a strong commitment to innovation. These elements have created an attractive environment for foreign investors,particularly in the electronics and semiconductor sectors.
South Korea’s Samsung, for instance, has established Vietnam as its largest product development center in southeast asia. This move has paved the way for other global giants to follow suit. Recently, NVIDIA, the American semiconductor leader, signed a groundbreaking agreement with the Vietnamese government on December 5 to establish an AI research and development center and a data hub in Vietnam. This partnership is expected to accelerate the country’s technological advancements and solidify its role in global supply chains.
strategic Partnerships and trade Agreements
Vietnam’s integration into key trade agreements, such as the Extensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union-Vietnam Free Trade Agreement (EVFTA), has further bolstered its international competitiveness.According to Dr.Chu Duc Trinh, rector of the University of Engineering and Technology at Hanoi National University, these agreements provide Vietnam with a unique prospect to expand its market and strengthen its industrial foundations.
“Integrating Vietnam into key trade agreements offers it a unique opportunity to expand its market and strengthen its international competitiveness,” said Dr. Trinh.
Government Support and Strategic Priorities
The Vietnamese government has identified the semiconductor industry as a strategic priority, aiming to leverage it as a driver of economic growth. Prime Minister Pham Minh Chinh emphasized the need to renew traditional growth drivers like investment, export, and consumption while promoting new ones such as digital transformation, green transition, and circular economies.
“The development of the semiconductor industry is Vietnam’s strategic choice and top priority,” stated Prime Minister Chinh. He also highlighted the importance of embracing emerging technologies like artificial intelligence (AI), the Internet of Things (IoT), and cloud computing to create new production forces.
A Look ahead
Vietnam’s semiconductor industry is poised for exponential growth, supported by international partnerships, a skilled workforce, and a favorable investment climate. As the country continues to innovate and integrate into global supply chains, it is indeed set to become a regional hub for technology and innovation.
Key Highlights of Vietnam’s Semiconductor industry
| Aspect | Details |
|————————–|—————————————————————————–|
| Market Size (2024) | Expected to exceed USD 6.16 billion |
| major Investors | Samsung, NVIDIA |
| strategic Agreements | CPTPP, EVFTA |
| Government Priorities | Digital transformation, green transition, AI, IoT, cloud computing |
| Workforce | Young, tech-savvy, and skilled |
Vietnam’s journey to becoming a semiconductor powerhouse is a testament to its commitment to innovation and strategic planning. As global demand for semiconductors continues to rise, Vietnam is well-positioned to play a pivotal role in shaping the future of technology.
For more insights into Vietnam’s growing influence in the tech industry, explore how the country is leveraging its strengths to attract global investments and partnerships.
What are your thoughts on Vietnam’s rise in the semiconductor industry? Share your views in the comments below!
Vietnam’s semiconductor industry is rapidly evolving into a important player in the global tech supply chain. The country’s strategic focus on digital transformation, innovation, and favorable economic policies has created a thriving ecosystem for semiconductor growth. Hear’s a extensive overview of Vietnam’s semiconductor industry, its strategic roadmap, key players, and future prospects:
Vietnam’s Semiconductor Strategy: A Four-Pronged Approach
Vietnam’s semiconductor strategy is built on four key pillars:
- Specialized Chip Production: Focusing on chips for AI and IoT applications.
- Electronics Industry Progress: Meeting the growing global demand for semiconductors.
- Talent Development: Training highly skilled professionals in chip design and manufacturing.
- Global Supply Chain Integration: Attracting foreign investment and strengthening Vietnam’s position in the global semiconductor sector.
A Roadmap for Success
Vietnam’s semiconductor strategy is divided into three phases:
- 2024–2030:
– Host at least 100 semiconductor design companies.
– Establish a small-scale foundry.
– Attract 10 testing and encapsulation companies.
- 2030–2040:
– Expand capabilities and infrastructure.
– Strengthen domestic production and innovation.
- 2040–2050:
– Achieve self-sufficiency in semiconductor production.
- Become a global leader in key segments of the industry.
Local and Global Players Driving Growth
Vietnam’s semiconductor industry is being propelled by a mix of local pioneers and global giants.
local Leaders
- FPT Technological Group: Launched semiconductors for IoT applications in agriculture and healthcare.
- Viettel: Developed chips for 5G devices and aims to achieve self-sufficiency in production and packaging.
Global Partners
- South Korea: Companies like samsung, Hanmi Semiconductor, and Hana Micron vina have invested in substrate and packaging production.
- United States: Intel and Amkor Technology have established assembly and testing facilities.
- Multinational Presence: Tech giants like Apple, Dell, Meta, Qualcomm, Texas Instruments, Xiaomi, and their suppliers, including BYD, Foxconn, and goertek, are actively investing in Vietnam.
Key Highlights at a Glance
| Aspect | Details |
|————————–|—————————————————————————–|
| FDI Projects | 174 projects, USD 11.6 billion registered capital |
| 2024 Revenue | USD 6.16 billion (up from USD 5.58 billion in 2023) |
| Strategic Focus | Specialized chips for AI and IoT, electronics development, talent training |
| Key Players | FPT, Viettel, Samsung, Intel, Apple, Qualcomm, Xiaomi |
| Infrastructure | NIC, high-tech parks in Hanoi, Da Nang, Ho Chi Minh City |
A Thriving Ecosystem for Semiconductor Growth
Vietnam’s semiconductor industry benefits from several favorable factors:
- Young, Tech-Savvy Workforce: A growing pool of skilled professionals.
- Tax Incentives: Attractive policies for foreign investors.
- Commitment to Innovation: Strong government support for R&D and infrastructure development.
Global companies like Samsung have established Vietnam as their largest product development center in Southeast Asia. Additionally,NVIDIA signed a groundbreaking agreement with the Vietnamese government on December 5,2023,to establish an AI research and development center and a data hub in Vietnam. This partnership is expected to accelerate Vietnam’s technological advancements and solidify its role in global supply chains.
Strategic partnerships and Trade Agreements
Vietnam’s integration into key trade agreements, such as the comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union-Vietnam Free Trade Agreement (EVFTA), has further bolstered its international competitiveness. These agreements provide Vietnam with access to global markets and enhance its appeal as a hub for semiconductor manufacturing and innovation.
A Radiant Future Ahead
Vietnam’s semiconductor industry is on a trajectory to become a global powerhouse.With its strategic roadmap, robust infrastructure, and partnerships with leading tech companies, the country is well-positioned to meet the growing demand for semiconductors and secure its place in the global supply chain.
As Vietnam continues to innovate and attract investment, it is poised to play a pivotal role in shaping the future of the semiconductor industry.
For more insights into Vietnam’s tech advancements, explore how the country is leveraging its National Innovation Center (NIC) to drive innovation.
