Brian Jeffrey
Growing Semiconductor Opportunities in Vietnam
Vo Xuan Hoai, the deputy director of the National Innovation Center (NIC), has reported a recent surge in visits from leaders of major semiconductor and technology companies to Vietnam, looking for potential business opportunities. This has led to the emergence of significant packaging and testing firms in the country.
This influx indicates a developing semiconductor ecosystem in Vietnam.
“With many supply chains relocating from other nations, particularly China, Vietnam is becoming an increasingly important player in the global semiconductor supply chain,” Hoai stated.
He further emphasized that an abundant and skilled labor force is a key factor motivating multinationals to invest in Vietnam, establishing the country as a prime location for semiconductor enterprises.
Infrastructure and Educational Initiatives
For Vietnam to enhance its role in the international semiconductor arena, improvements in infrastructure—such as electricity, water supply, and logistics—are essential.
The government is committed to investing heavily in infrastructure projects, including power plants, airports, ports, and highways to support this industry.
Moreover, policies to foster semiconductor growth have been implemented, including a national initiative aimed at training 50,000 semiconductor engineers by 2030.
Future Prospects in Semiconductor Development
Nguyen Thi Bich Yen of Soitec Group predicts rapid growth in the semiconductor sector between 2025 and 2030, projecting that its economic impact will double that of the last 60 years, presenting significant opportunities not just for Vietnam but globally.
She noted that the upcoming transformations in the industry would particularly favor countries newly entering the semiconductor field.
As the demand for labor in the semiconductor industry skyrockets, especially with the rise of artificial intelligence (AI), there could be a need for 1 million workers internationally. This makes Vietnam and Southeast Asia attractive for multinationals seeking to diversify their supply chains.
Vietnam boasts a youthful and capable workforce, coupled with a cultural attitude that embraces challenges, positioning it well to be a supplier of talent for the global semiconductor industry.
Investment and Future Innovations
Yen underlined that microchip manufacturing demands substantial investment. However, the escalating costs of advancing microchip transistors signal a shift toward advanced packaging technologies, representing a prime opportunity for Vietnam.
This trend also aids in the design process, making the design of LED chips more manageable than System on Chip (SoC) designs—a sector that Vietnam should consider exploring.
To ensure sustainable growth, Vietnam could focus on establishing laboratories in universities and developing software for LED chip design. This would enable the country to benefit significantly from the industry’s advancements.
Upcoming Events and Collaborations
The Vietnam Semiconductor Industry Exhibition 2024 (SEMIExpo Vietnam 2024) commenced on November 7 in Hanoi, marking the country’s first and largest international semiconductor exhibition, organized by NIC and the Global Semiconductor Alliance (GSA).
Minister Nguyen Chi Dung highlighted Vietnam’s advantages, such as a stable political climate, rapid economic growth, and a qualified workforce, making it a promising haven for semiconductor investments.
The Minister also shared that his ministry has tasked NIC with collaborating with the US Department of State and Arizona State University to roll out a training program aimed at producing over 4,000 microchip packaging and testing engineers by the end of 2025.
Vietnam is also working alongside the US, Japan, South Korea, Singapore, Taiwan, and Europe to advance its human resources and strengthen the semiconductor and AI sectors.
Strategic Vision for Semiconductor Growth
According to Le Nam Trung, deputy director of the Authority of ICT Industry and Communications, Vietnam aims to become a significant component of the global semiconductor supply chain by 2030, guided by a strategic formula: C = SET + 1.
In this equation, C represents Chips, S stands for specialized chips, E signifies the electronics sector, T refers to workforce and talent, while +1 illustrates Vietnam’s intended integration into the global semiconductor framework.
The GSA projects that Vietnam’s semiconductor market could reach a valuation of $7.01 billion by 2028.
