Destination of leading investors

From 2006 to 2021, Intel - one of the three leading semiconductor manufacturers in the world - developed a factory in Vietnam with the investment scale of US$1.5 billion. It is estimated that this factory accounts for more than 50 percent of Intel’s total output globally.

Vietnam’s chip industry is forecast to develop very quickly in the years to come - photo: Quynh Nga

In September 2023, Hana Micron Vina (The Republic of Korea) inaugurated a semiconductor factory project in Van Trung Industrial Park (Bac Giang). This is the first semiconductor manufacturing project in the north. Hana Micron Vina manufactures and processes integrated circuit boards used for mobile phones and other smart electronic products, with a total registered investment capital of nearly US$600 million.

Earlier, in May 2023, Infineon Technologies AG (Germany), a company specializing in semiconductor solutions for power systems and IoT, announced the expansion of its scale of operations in Vietnam and the establishment of an electronic chip development team working in Hanoi.

Chip production in Vietnam

In October 2023, a new establishment of the National Innovation Center (NIC) was inaugurated and put into operation in Hoa Lac Hi-Tech Park in Hanoi. Currently, NIC and three high-tech parks in Ho Chi Minh city, Hanoi and Da Nang city are ready to welcome investors in the semiconductor industry with high incentive mechanisms. NIC and these high-tech parks will be an important bridge to support the development of Vietnam’s semiconductor industry ecosystem.

Minister of Planning and Investment Nguyen Chi Dung said that to realize the Vietnam - United States Joint Statement in developing the semiconductor industry, recently, Vietnam has actively made preparations to welcome US investors, including completing a one-stop mechanism and building a project to train 50,000 engineers in this industry by 2030.

Critical national industry for next 30-50 years

In the context of businesses around the world accelerating in the race to digital transformation and developing device ecosystems, the production of integrated semiconductor microchips has become the backbone of electronic systems and technology sector. The growing adoption of IoT technology and smart home technology is driving the growth of the semiconductor market in Vietnam, and semiconductor component factories are being promoted to address the global shortage.

Nguyen Quan, Chairman of the Vietnam Automation Association and former Minister of Science and Technology, said Vietnamese people have the capacity and qualifications in information technology and chip technology, and Vietnam has strong research groups like FPT and could take its advantages in researching, designing, testing, manufacturing and commercializing chips.

Meanwhile, Minister of Information and Communications Nguyen Manh Hung said 2024 marks the first year when Vietnam implements the national semiconductor industry development strategy. The semiconductor industry is a foundational sector and, more importantly, a critical national industry for the next 30-50 years. It is also the core of the digital transformation industry, a large market for semiconductor chips. Vietnam is characterized by high consumption of electronic devices, and is in a rapid industrialization and digital transformation stage; therefore, it will be a favorable foundation for the development of the domestic semiconductor industry.