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Opportunities for the Semiconductor Industry to Soar in Vietnam

Published: 4.2.2024

Despite facing numerous challenges, the potential for the semiconductor industry to thrive in Vietnam is significant, especially amidst the global shift in semiconductor production. This transition presents a golden opportunity for the country. 


The global semiconductor market is witnessing a shift due to various factors, and Vietnam is emerging as a destination for international semiconductor manufacturing conglomerates. To leverage this advantage, Vietnam is developing a national strategy for semiconductor industry development closely linked with the electronics industry. 


Currently, apart from Intel Corporation, other multinational corporations investing in Vietnam's semiconductor industry include Samsung, Qualcomm, Texas Instruments, SK Hynix, Hayward Quartz Technology, Synopsys, and NXP Semiconductors. Notably, the plans of Nvidia Corporation (USA) to build a factory in Vietnam signify the country's increasing appeal to foreign investors. 


Moreover, Vietnam has attracted the interest of many large enterprises involved in chip equipment, packaging, testing, such as Qorvo, Synopsis, Marvel, Renesas, Intel, Amkor, Hana Microns. These conglomerates are poised to share expertise and deep knowledge with local partners in innovating products under the banner of 'Make in Vietnam.' Additionally, Vietnamese companies like FPT Semiconductor, CMC, and Viettel are also venturing into chip research and production, paving the way for deeper integration into the global semiconductor industry. 


Cicor Group (Switzerland) is one such rapidly developing electronics manufacturer in Europe, with its Vietnam factories achieving world-class production levels, comparable to those in Switzerland, Germany, and the United States. 


Investment in expanding manufacturing plants not only doubles the production capacity but also enhances technical capabilities for producing electronic and electromechanical finished products for export, thereby contributing to the country's overall investment capital. 

Experts suggest that while the potential for developing the semiconductor industry in Vietnam is vast, the country must overcome significant difficulties and challenges to establish itself prominently in the global semiconductor industry. 

According to industry leaders, Vietnam lacks a comprehensive ecosystem for the semiconductor industry, including domestic suppliers, product design companies, packaging facilities, testing, and product development error analysis. Although the labor force in Vietnam is abundant, there is a shortage of high-quality personnel with deep expertise in semiconductor technology. 

Technavio's report indicates that the semiconductor market in Vietnam is expected to grow at a rate of about 6.5% annually from 2021 to 2025. However, the acute shortage of skilled labor has become a major obstacle for the semiconductor industry.

Statistics from the National Science and Technology Portal show that by the end of 2023, there were over 5,500 chip design engineers nationwide. However, the demand for semiconductor industry personnel in Vietnam ranges from 5,000 to 10,000 engineers annually, with the current capacity meeting less than 20% of this demand. Additionally, only about 35 universities in Vietnam are capable of training in semiconductor technology, with very few experienced and traditional training institutions.


Therefore, experts emphasize the need to develop semiconductor talent to meet industry demand. With current advantages and ready infrastructure, attracting a pool of high-quality, specialized talent will entice more technology giants to invest in Vietnam's semiconductor industry. 

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