Vietnam emerges as a new hub in the global semiconductor industry

DNHN - Amid the backdrop of the Fourth Industrial Revolution, Vietnam is rising as a new semiconductor industry hub.

Recently, at the Ba Thien 1 Industrial Park in Vinh Phuc, South Korean investor Signetics began construction on a factory producing memory chip and GPU components. With an investment of $100 million across 5 hectares, this facility is scheduled to start operations in October 2025, supplying inputs for major electronics groups like Samsung and SK.

In the south, similar investments are pouring in. U.S. tech giant NVIDIA visited Ho Chi Minh City in early July 2024 to explore opportunities for artificial intelligence (AI) development and support for startups. In neighboring Dong Nai, notable projects include Silicon Carbide Company’s $127 million investment from Coherent Group.

Marvell has expanded its footprint with a new chip design center in Da Nang, with plans for another center in Ho Chi Minh City to meet the demand for advanced chip technology. Meanwhile, Dutch company BE Semiconductor Industries N.V. invested over 115 billion VND in the Saigon Hi-Tech Park, with operations expected to commence in Q1 2025.

According to Savills Vietnam, the first half of 2024 saw $15.18 billion in FDI inflows, including major players from the U.S., Japan, the Netherlands, South Korea, Taiwan, and Germany. One prominent project is Taiwan’s Tripod Technology, which invested $250 million in the Chau Duc Industrial Park in Ba Ria - Vung Tau.

The presence of these major semiconductor corporations not only creates job opportunities but also enhances Vietnam's technological capabilities and high-quality workforce training—critical factors as global competition intensifies.

Vietnam is becoming a promising chip manufacturing destination driven by four key factors: its strategic geographic position, strong economic ties with leading chip-producing countries, government support for the semiconductor industry, and labor cost advantages. The country also boasts the world’s second-largest rare earth reserves, second only to China.

The Vietnamese government has introduced various tax incentives and investment support policies to attract high-tech industry players, particularly through Decision No. 29/2021/QD-TTg, creating multiple opportunities for semiconductor firms.

Vietnam is not just focusing on attracting investment but also aims to become a long-term chip production center. To realize this goal, Vietnam needs to strengthen its skilled workforce, particularly in assembly, packaging, and testing (OSAT) fields, to support both integrated device manufacturers (IDM) and fabless firms focused on design and outsourcing.

The government is also refining related policies to support semiconductor development, including establishing an investment support fund and issuing regulations on digital technology industries. However, to draw substantial investment, coordination at all levels of government is essential for updating and synchronizing development policies.

To attract effective investment in semiconductors, Vietnam must ensure a transparent, stable legal environment. This includes establishing a streamlined, single-window administrative process, eliminating unnecessary requirements, and protecting intellectual property rights. Additionally, clear export control measures and compliance with trade regulations are necessary.

Notably, workforce training and skill development are critical. The government should prioritize STEM (science, technology, engineering, mathematics) education and training programs to meet the future demands of the semiconductor industry.

Vietnam is on track to become a significant chip production hub in the region and globally. However, achieving this vision requires close collaboration between government agencies and businesses to foster a favorable investment climate, elevate workforce quality, and implement sustainable development policies. Only with a united and determined approach can Vietnam affirm its position in the global semiconductor industry.

Nghe Nhan