Brian Jeffrey
In the competitive global semiconductor landscape, Vietnam is emerging as a significant player.
Leveraging open economic policies, a favorable investment climate, and an advantageous location, Vietnam has attracted major tech companies like Intel, Samsung, Foxconn, and Amkor Technology for semiconductor production and assembly.
Prominent global media, such as Financial Times, Reuters, Bloomberg, and The Wall Street Journal, have lauded the swift progress of Vietnam’s semiconductor sector.
According to Reuters, significant investments from leading semiconductor firms are flowing into Vietnam. For instance, Foxconn, the top contract electronics manufacturer, has committed $383 million to a printed circuit board plant in Bac Ninh. This facility is projected to produce 2.79 million units yearly, bolstering Vietnam’s position in the global supply chain.
Bloomberg points to Vietnam as a preferred choice for tech companies diversifying supply chains and diminishing dependency on China. Intel has notably invested over $1.5 billion in its Ho Chi Minh City facility, marking it as the company’s largest assembly and testing hub globally.
Nikkei describes Vietnam as a “magnet” for international semiconductor entities, attributing this to its skilled labor force and economical operations. Alchip Technologies, a Taiwanese AI chip design service leader, is set to expand its research and development department in Vietnam and plans to open its first office this year.
Alchip’s CFO, Daniel Wang, indicated plans to grow the workforce to 100 engineers within a few years. CEO Johnny Shen emphasized Vietnam’s advantages, citing the strong work ethic and technical capabilities of its engineers.
South Korean companies are pivoting towards Vietnam as a response to domestic talent shortages. Nikkei reports that Vietnam has become a focal point for discussions among South Korean business executives and officials.
Availability of skillful tech workers amid global talent deficits positions Vietnam as a key player in augmenting its supply chain value. Marvell, a leading semiconductor firm, recognized Vietnam as a “strategic location for technical talent development.”
KPMG’s Brian Chen remarked on the rising demand for advanced technical skills in Vietnam, which is currently exceeding supply as more firms enter Southeast Asia. He sees substantial growth potential in the country’s talent pool, particularly in chip design, predicting that companies will need to recruit between 300 to 500 staff for their Vietnamese operations.
When compared to Taiwan and South Korea, the productivity and salary benchmarks in Vietnam make it a more appealing and economical choice. Chen noted that Ho Chi Minh City is favored by foreign firms for its vibrant business scene and quality lifestyle, with Hanoi also being a desirable option.
Financial Times reports that the Vietnamese government is dedicated to providing adequate energy and infrastructure to foster the semiconductor industry’s expansion. Initiatives like tax benefits, infrastructure enhancements, and streamlined regulations have spurred investment from international tech companies.
The government has also launched a Semiconductor Industry Development Strategy for 2021-2030, aiming to position Vietnam as a top regional hub for semiconductor manufacturing and exports. This includes forming public-private partnerships and developing high-tech zones to create a viable semiconductor ecosystem.
Vietnam aspires to train 50,000 semiconductor engineers by 2030 through collaborations with prominent corporations and reputable universities. Programs and internships with firms like Intel and Samsung have equipped Vietnamese engineers with exposure to leading-edge technologies.
The Wall Street Journal emphasizes the dynamic, youthful, and highly qualified workforce as a critical element in Vietnam’s semiconductor achievements. Over 40% of Vietnamese university graduates specialize in engineering, computer science, and IT, establishing a robust talent pipeline for technology sectors.
Robert Li, Vice President of Sales for Synopsys in Taiwan and Southeast Asia, stated that “the strong interest among Vietnamese students and the government’s support programs will help establish Vietnam as a key semiconductor talent hub.”
With such enthusiastic support from international media, Vietnam is on track to become a vital semiconductor center within the region and beyond. A solid national strategy, skilled human resources, and continuous investment are creating a foundation for sustainable industry development.
If Vietnam can harness its strengths and tackle ongoing challenges, it might soon be a crucial player in the global semiconductor supply network.
