Vietnam’s path to sustainable semiconductor industry

Vietnam is striving to enhance its competitiveness in the global semiconductor industry

The strategy also aims to establish a comprehensive semiconductor industry ecosystem with at least 300 enterprises specializing in design, three semiconductor chip manufacturing plants, and 20 factories dedicated to packaging and product testing. With these development milestones, Vietnam seeks to build a sustainable value chain and enhance its competitiveness in the global semiconductor industry.

On September 21, 2024, Prime Minister Pham Minh Chinh signed Decision 1018/QD-TTg, approving the National Semiconductor Industry Development Strategy until 2030, with a vision to 2050. This is considered a strategic step to position Vietnam as a prominent player in the global semiconductor value chain. The strategy is divided into three phases, each targeting specific goals to enhance the capabilities of Vietnam’s semiconductor industry.

To realize these ambitious goals, the strategy places special emphasis on advancing research and development of core technologies and creating groundbreaking next-generation chip products. Vietnam will invest in core technology research centers within the semiconductor field, prioritizing the development of chip products for artificial intelligence (AI) and the Internet of Things (IoT).

At the same time, Vietnam will build and develop a domestic semiconductor industry ecosystem, connected with the ecosystems of strategic international partners. A shared tools platform will be established to support innovative startups, train specialists, and aid in the processes of semiconductor chip design and development. The goal is to promote the application of specialized chips in key sectors, such as high-tech agriculture, industrial automation, consumer electronics, and areas related to digital transformation, laying the foundation for a robust and self-sustaining semiconductor industry.

Vietnam’s semiconductor industry development strategy outlines a range of incentives and investment support solutions to stimulate the national semiconductor ecosystem, covering everything from factory construction and technology development to market expansion and competitiveness enhancement. A key focus is a special government-backed investment and financial support policy to build a small-scale, high-tech semiconductor chip manufacturing plant meeting the needs for chip research, design, and production, serving as a platform for domestic enterprises to access affordable semiconductor manufacturing. This initiative aims to encourage the growth of research projects and startups in this field.

The strategy also emphasizes focusing resources on the research and development of next-generation electronic devices, especially products with specialized and AI chips integrated. Vietnam will prioritize using the state budget to procure domestically manufactured electronic devices, aiming to stimulate the robust growth of the local electronics industry.