Vietnam’s path to expanding its semiconductor industry
The Vietnamese plan is to become a global semiconductor hub.
Vietnam has unveiled a national strategy to develop its semiconductor industry, with a focus on gradually building expertise and integrating it into the assembly, packaging, and testing (APT) stages of the value chain. The goal is to position Vietnam as a global semiconductor hub in the long term. According to a report from The Diplomat, Vietnam’s stable political environment and neutral diplomatic stance are key advantages in attracting foreign investment and partnerships in this sector.
The country’s youthful population also presents a major advantage as labour shortages loom in major semiconductor hubs like the US and South Korea. Investments in education and talent development will help Vietnam strengthen its presence in areas like chip design and research. Partnerships, such as those with Amkor, Cadence, and Synopsys, further support Vietnam’s ambitions to grow in the semiconductor space.
However, the report highlights challenges, including geopolitical pressures to align with either the US or China, competition from other countries like India, Malaysia, and Indonesia, and the need to meet global sustainability standards. Balancing these challenges with the demands of a growing industry will be crucial for Vietnam’s success in becoming a key player in the global semiconductor market.
