Semiconductor Manufacturing: A Billion-Dollar Opportunity for Vietnam

Vietnam is emerging as a prominent hub for semiconductor manufacturing, attracting significant investments from major international corporations. Countries like Thailand, the Philippines, Cambodia, and India also show interest in this sector, but Vietnam holds a competitive edge, evidenced by the involvement of large companies from the U.S. and South Korea. 

Recently, Deputy Prime Minister Tran Luu Quang attended the inauguration of Hana Micron Vina's semiconductor plant in Bac Giang, marking the first semiconductor manufacturing project in northern Vietnam. Hana Micron Vina plans to increase its investment to over $1 billion by 2025, projecting revenues of $800 million and creating approximately 4,000 jobs. 

Intel, a top global semiconductor manufacturer, has been expanding its operations in Vietnam since 2010, with an investment increase to $1.5 billion in 2021 and plans for further expansion. Additionally, Amkor Technology is set to launch a $1.6 billion facility in Bac Ninh in October 2023, and companies like Synopsys and Marvell are establishing semiconductor design centers in Ho Chi Minh City. 

The recent upgrade in Vietnam-U.S. relations to a Comprehensive Strategic Partnership underscores Vietnam's potential as a key player in the semiconductor industry. Both nations support the rapid development of Vietnam's semiconductor ecosystem, with the U.S. providing an initial grant of $2 million for human resource development. 

Samsung, in collaboration with the Vietnamese government, is preparing for mass production of semiconductor components in Thai Nguyen. The semiconductor industry is anticipated to become a significant part of Vietnam's economy, complementing its existing electronics manufacturing sector. 

Vietnam aims to foster domestic participation in the semiconductor industry alongside foreign investments. Local companies like FPT Semiconductor, CMC, and Viettel are beginning to engage in chip production. Developing a high-skilled workforce and policies to facilitate technology transfer are crucial for achieving this goal. 

The Vietnamese government emphasizes the importance of basic scientific research and understanding core technologies to build a strong semiconductor industry. By attracting and training top global semiconductor engineers, Vietnam can enhance its technological capabilities and achieve its goal of producing Vietnamese-branded chips. 

Vietnam's semiconductor industry is projected to surpass a value of $6.17 billion by 2024, positioning the country to play a significant role in the global semiconductor market and aiding its economic advancement.