Semiconductor industry attracts special interest from FDI investors
- 201
- Business
- 14:23 04/07/2024
DNHN - The semiconductor industry is one of the fastest-growing sectors, attracting significant attention from foreign direct investment (FDI) investors. Vietnam is currently attracting FDI to capitalize on the potential of this industry.
![The semiconductor industry offers many attractive advantages such as high value-added potential, advanced technology, and long-term development potential The semiconductor industry offers many attractive advantages such as high value-added potential, advanced technology, and long-term development potential](https://media.doanhnghiephoinhap.vn/uploads/2024/07/04/ban-dan-1719803065-1720077419.jpg)
Attracting FDI investors
In a report on the state of foreign investment attraction for the first half of 2024, published by the Foreign Investment Agency (Ministry of Planning and Investment), a notable highlight was the capital increase project by Amkor, one of the "giants" in the semiconductor industry. This project decided to invest an additional USD 1.07 billion, contributing significantly to the total adjusted investment capital in June 2024, reaching nearly USD 1.9 billion. This means that the total adjusted investment capital for the first six months has increased to more than USD 3.95 billion, a 35% increase compared to previous months.
Notably, Amkor's project, highlighted in the report, includes several major projects in the semiconductor, component manufacturing, and electronic product sectors that have received new investments and capital increases in the first half of this year. Initially, Amkor planned to invest in phases until 2035, but after completing the factory in October 2023, they decided to invest 11 years earlier than initially planned, demonstrating confidence in the market's prospects.
The semiconductor industry involves the manufacturing of electronic components based on semiconductors like silicon, quartz, gallium arsenide, and various other materials. The development of information technology, telecommunications, artificial intelligence, and autonomous vehicles has created an increasing demand for semiconductor components. This has driven the global growth of the semiconductor industry.
The semiconductor industry offers many attractive advantages such as high value-added potential, advanced technology, and long-term development potential. Semiconductor components are widely used in consumer electronics, computers, mobile phones, medical devices, and various other industrial fields. This creates significant opportunities for FDI investors seeking high returns and business expansion.
Currently, several countries are known for attracting FDI interest in the semiconductor industry. China, the USA, Germany, Japan, and South Korea are leaders in the production and export of semiconductor components. These countries have made significant investments in infrastructure, research, and technology development to attract FDI investors.
![Vietnam is looking further ahead by promoting research and technology development in the semiconductor industry Vietnam is looking further ahead by promoting research and technology development in the semiconductor industry](https://media.doanhnghiephoinhap.vn/uploads/2024/07/04/ban-dan-1-1720077554.jpg)
Vietnam - A potential destination for FDI in the semiconductor industry
In recent years, Vietnam has emerged as an attractive destination for FDI investors in the semiconductor industry. With a young population and a high-skilled workforce, Vietnam can provide quality labor at competitive prices. Additionally, the government's supportive FDI policies play a crucial role in attracting foreign investors.
Industrial parks and export processing zones in Vietnam have been built with advanced infrastructure and amenities to serve the semiconductor industry. Furthermore, Vietnam focuses on training and developing specialized human resources in the semiconductor field, creating favorable conditions for FDI companies to find quality talent.
Vietnam's attractive tax policies and open market regulations also contribute to attracting FDI investors in the semiconductor industry. Reducing import taxes for semiconductor components and facilitating product exports have created a favorable and attractive business environment for investors.
Additionally, Vietnam is looking further ahead by promoting research and technology development in the semiconductor industry. The government is investing in research and technology development projects, creating opportunities for FDI enterprises to collaborate and invest in advanced technology development.
During a working session with Minister of Planning and Investment Nguyen Chi Dung in the USA on June 26, Mr. Richard Lawton Thurston, former Vice President of TSMC, one of the world's largest semiconductor manufacturers from Taiwan, affirmed that Vietnam has great potential to develop the semiconductor and artificial intelligence (AI) industries.
Mr. Thurston stated: "AI technology requires various technologies such as sensors, memory, data collection, and processing... Therefore, Vietnam can choose one of these stages to focus on developing and building its development strategy".
However, to continue attracting FDI interest in the semiconductor industry, Vietnam needs to continue improving infrastructure quality, training high-quality human resources, and creating a stable and transparent business environment. Additionally, Vietnam needs to continue promoting research and technology development to become a leading semiconductor industry center in the region and globally.
Thus, the semiconductor industry is becoming an attractive destination for FDI investors worldwide. Vietnam, with its advantages of a high-quality workforce, supportive FDI policies, and advanced infrastructure, has attracted the interest of investors in the semiconductor industry. However, to maintain and develop the semiconductor industry, Vietnam needs to continue improving infrastructure quality and investing in research and technology development to become a reliable partner and supplier of high-quality semiconductor components in the global market.
Nghe Nhan
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