The only significant semiconductor facility in Vietnam right now is Intel’s chip assembly and testing center, but the country aims to become a major player in the semiconductor industry by 2050. Prime Minister Pham Minh has formulated a strategy that sets out specific goals, detailed timelines and practical steps to stimulate growth in the sector, TrendForce notes.
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The document is comprehensive and includes five major goals: designing specialized chips, promoting growth in the electronics sector (using chips developed in Vietnam and other countries), creating a skilled workforce, attracting investment and implementing other initiatives to stimulate the industry.
The first phase of the strategic plan covers the period from 2024 to 2030, focusing on leveraging Vietnam’s strengths to attract foreign direct investment and build competencies in semiconductor research, design, manufacturing and testing. By the end of this stage, the country intends to create at least 100 design companies, as well as build 1 small semiconductor production plant and 10 packaging and testing enterprises. Vietnam expects this to generate industry revenues of $25 billion and more than 50,000 engineers and university graduates. Electronics industry revenue is expected to exceed $225 billion by 2030, with additional electronics assembly plants likely to be built.
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With 50,000 engineers and university graduates in the semiconductor field, the second phase from 2030 to 2040 will allow for a combination of self-sufficiency and foreign direct investment. The country expects to create at least 200 chip design companies, build two more factories and 15 packaging and testing facilities. The most important aspect of the second stage is the development of human resources – by 2040, the number of highly qualified specialists should double and exceed 100,000 people. By the end of this phase, revenue from the country’s semiconductor industry should exceed $50 billion, and added value will be 15–20%; the annual revenue of the electronics industry will exceed $485 billion with a value added of 15–20%.
In the third phase (2040–2050), at least 300 design firms, three more semiconductor factories (for a total of six) and 20 packaging and testing facilities will be established in Vietnam. With 600 chip design companies, Vietnam aims to become a leading country in semiconductor research and development. The industry’s revenue target for this phase is over $100 billion while increasing self-sufficiency. By 2050, Vietnam’s electronics industry revenue is expected to exceed $1 trillion, according to the strategy. Value added targets range from 10% to 25%.
Vietnam may not yet be associated with chip manufacturing, but Intel’s semiconductor testing and assembly facility near Ho Chi Minh City is critical to the company’s operations. Samsung Electronics, Intel, ASE, Amkor, Texas Instruments, NXP, ON Semiconductor, Qualcomm, Renesas Electronics, Marvell, Infineon and Synopsys have also made significant investments in the country; Nvidia also spoke positively about the country. In the meantime, the country must overcome a number of problems related to energy supply, low wages and gaps in technological infrastructure.