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Semiconductor Manufacturing Sector: A Billion-Dollar Opportunity for Vietnam

Published: 6.21.2024

Vietnam is emerging as a key player in the global semiconductor manufacturing industry, attracting billions of dollars in investment. Many countries like Thailand, the Philippines, Cambodia, and India are interested in this sector, but Vietnam has a competitive edge due to the attention from major corporations from the U.S. and South Korea. 

On September 16, Deputy Prime Minister Trần Lưu Quang attended the inauguration of Hana Micron Vina's semiconductor plant in Bắc Giang, marking the first such facility in Northern Vietnam. This South Korean company, investing nearly $600 million initially, plans to increase its investment to over $1 billion by 2025. 


Intel, a leading semiconductor producer, began its $1 billion chip manufacturing project in Vietnam over a decade ago and increased its investment to nearly $1.5 billion in 2021, with plans for further expansion. Amkor Technology, based in Arizona, is set to start operations in Bắc Ninh in October 2023, with a $1.6 billion investment. Other companies like Synopsys and Marvell are also establishing significant semiconductor design and development centers in Vietnam. 


The U.S. and Vietnam have upgraded their relationship to a Comprehensive Strategic Partnership, recognizing Vietnam's potential in the semiconductor industry. The U.S. government will provide an initial $2 million grant for workforce development in this sector, with further support from Vietnam's government and private sector. 


Samsung is also preparing to mass-produce semiconductor grids in Thái Nguyên, marking its third business operation in Vietnam. 


Experts believe that Vietnam has a strong chance to join the global semiconductor race but emphasize the need for participation from Vietnamese companies and high-quality workforce training. Current Vietnamese players like FPT Semiconductor, CMC, and Viettel need to deepen their involvement in the production chain. Attracting international talent and facilitating technology transfer are crucial steps. 


Vietnam aims to produce branded semiconductor products and meet the industry's demands by improving its workforce and scientific research. The Vietnamese government is committed to investing in science and technology and revising laws to support these goals. The country's semiconductor industry is expected to surpass $6.17 billion by 2024, potentially helping Vietnam escape the middle-income trap. 

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