Vietnam's opportunity on the path to the multibillion-dollar semiconductor industry
The world economic and political context is opening up great opportunities for Vietnam to develop the semiconductor chip industry as well as participate in the global value chain.
The urgent problem today, according to experts, is the need to have a program to develop quality human resources to serve the industry and implement policies to attract investment and talent to welcome a market of up to 1,000 billion USD in 2030.
Semiconductor microchips are considered the foundation of modern computing. A series of devices people are using, such as cars, phones, computers, televisions, airplanes, robots, medical equipment, and other household electronics, all need chips and microcircuit systems to operate.
The "big guys" in the semiconductor industry have expanded to a new area - Vietnam
Vietnam's status and reputation have improved due to political stability and economic progress, which has created prospects for the country to attract some of the world's top semiconductor technology businesses.
In order to begin trial production by the end of October, Amkor Technology Group (Korea) is making a hasty investment in a plant located in Bac Ninh province that will produce, assemble, and test semiconductor materials and equipment. The high-tech semiconductor plant project at Yen Phong II-C Industrial Park, with a total investment capital of 1.6 billion USD, will be Amkor's largest facility worldwide.
Similarly, Samsung recently held the first round of the GSAT (Global Samsung Aptitude Test) recruiting exam in 2023 to support the R&D Center's (Hanoi) operations as well as the factory's plans to create transistor grids. Thai Nguyen is home to Samsung Electro-Mechanics Vietnam (SEMV). The project in question has a capital of more than $2.6 billion.
In the meantime, operating companies in Vietnam are consistently expanding the scope and location of their initiatives. For instance, the authorities of Hoa Binh province have recently been approached by Meiko Group (Japan) to assist the establishment of a plant manufacturing various electronic circuits, which would require an investment of almost 200 million USD, on the left bank of Song Da Industrial Park.
With a total investment of over 500 million USD, this group of electronic circuit board manufacturers and assemblers made their first investment in 2006. Today, they operate three manufacturing factories that produce and assemble electronic circuit boards.
Alternatively, Intel invested over 1 billion USD in Vietnam, and this plant continues to be a major hub for the company's production. Notably, trustworthy sources disclosed that this US-based semiconductor company is thinking about raising additional funding to expand the scope of its project in the Ho Chi Minh City Hi-Tech Park (SHTP).
Other international companies investing in the Vietnamese semiconductor market include Qualcomm, Texas Instruments, NXP Semiconductors, SK Hynix, and Hayward Quartz Technology, which together progressively produce an ecosystem of more specialized semiconductors.
It can be stated that Vietnam is getting more high-quality, value-added investment projects in tandem with the wave of FDI transfers. Vietnam is a top choice for investors looking to establish a semiconductor sector, as they can test chips, train design engineers, and build facilities for producing semiconductor materials and components. architecture of chips.
Notably, large investors in chip design are becoming interested in Vietnam; in the semiconductor sector, the design stage is highly valued and regarded as crucial.
How Vietnam is attractive?
Difficulties in the supply chain after the COVID-19 pandemic have caused many problems for the world's chip, component, and semiconductor manufacturing industries. In that environment, companies are reorganizing production chains, creating opportunities for many countries, including Vietnam, which is the destination for many of the world's leading chip businesses. According to Mr. CS Chua, President and CEO of Infineon Technologies Asia-Pacific, Vietnam is developing into an important market with a population of nearly 100 million people and a young demographic. becoming an ideal place for multinational companies wanting to recruit technical talent.
- Vietnam Semiconductor Industry: Key Investment Hub 2021 - 2025
- US sign a strategic partnership agreement with Vietnam
The approximately 100 million-person economy also has certain advantages that can make it easier to enter the semiconductor business, including a sizable and youthful population and a growing pool of talented workers in the electronics sector. Vietnam offers an environment that is conducive to business thanks to its strategic location in Southeast Asia and low labor costs. As it modifies the legal system to conform to international norms, the Vietnamese government is welcoming foreign investment and trade.
However, Vietnam boasts a community of regional business owners who have clear objectives for the country's future development trajectory and are constantly eager to learn and grow.
Action to enter the billion-dollar market
The market is expanding quickly due to the rising demand for semiconductor chip products across a wide range of industries, including healthcare, artificial intelligence, automotive manufacturing, electronics, and home appliances. global market for semiconductors.
The global semiconductor chip market is expected to reach 1,000 billion USD in sales by 2030, according to data from the American Semiconductor Industry Association (SIA). Sales are now estimated to be around 600 billion USD. This means that Vietnam will have access to markets with potential value in the billions of dollars if it participates in the global semiconductor market.
Given that the semiconductor industry is becoming a bigger player in the global economy, the majority of technologically advanced nations have developed policies to encourage and assist the sector while fortifying their ties to one another to gain dominance in it.
In terms of electronics exports, Vietnam is now ranked 9th in the world. Given its current strengths, analysts believe Vietnam has a chance to emerge as the global hub for chip design and manufacture, particularly in light of major tech companies' intentions to increase semiconductor component production in the country.
Analysts think Vietnam has a huge chance to grow its semiconductor sector and take part in the international semiconductor market. Vietnam needs to overcome several challenges to accomplish this, including building a domestic supply chain, fostering a positive business climate, providing money for research and development, and working with foreign partners.
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