Vietnam is set to strengthen its position in the high-tech sector by constructing a small-scale semiconductor chip manufacturing plant. This advanced facility will support the research, design, and production of domestic semiconductor chips, meeting internal demands and positioning the country as a significant player in the global semiconductor supply chain.

Market Size and Government Vision for Semiconductors

Vietnam’s semiconductor market is poised for remarkable growth. According to Statista Market Insights, revenue is expected to hit $18.23 billion in 2024 and soar to $31.39 billion by 2029, marking an impressive compound annual growth rate (CAGR) of 11.48% during this period.[1]

This growth is fueled by the rising global demand for semiconductors, driven by cutting-edge technologies like artificial intelligence (AI), Internet of Things (IoT), and 5G. As businesses look to diversify their supply chains, Vietnam is positioning itself as a prime contender for semiconductor manufacturing.

Adding momentum to this vision, Prime Minister Pham Minh Chinh recently signed Decision No. 1018/QĐ-TTg on September 21, 2024. This strategic roadmap lays out Vietnam’s ambitious Semiconductor Development Strategy through 2030, with a visionary outlook to 2050. By committing to build a semiconductor chip factory and fostering a robust ecosystem, Vietnam is signaling to the world its determination to emerge as a leading technology hub.

This synergy of market potential and government commitment underscores Vietnam’s rise as a dynamic player in the global semiconductor industry.

The development goals for the semiconductor industry based on Decision 1018/QĐ-TTg

Source: B&Company

Vietnam will build its first semiconductor chip factory in 2025

Scheduled to launch in 2025, Phase 1 of Viettel’s ambitious semiconductor project represents a significant step forward for Vietnam’s technology landscape. With an initial investment of $100 million dedicated to acquiring cutting-edge equipment, the project underscores a commitment to advancing the country’s technological capabilities.

Viettel has already completed critical infrastructure, electromechanical systems, and overall construction, ensuring the facility’s readiness to begin operations on schedule. This initiative bolsters Vietnam’s technological self-sufficiency while laying the groundwork for sustained growth in the semiconductor industry.

In collaboration with Nvidia, Viettel has also pledged to establish and operate the largest data center in Vietnam and the region. This strategic partnership not only elevates the country’s tech ecosystem but also highlights Vietnam’s potential as a regional leader in semiconductor innovation and data infrastructure. Phase 1 is just the beginning of a transformative journey for the nation’s tech-driven future.[2]

Source: VnEconomy

Positioning Vietnam in the Global Supply Chain

This bold step underscores Vietnam’s ambition to enter and compete in the rapidly growing high-tech semiconductor market. Globally, semiconductors are at the heart of the digital economy and the Fourth Industrial Revolution. The surging demand for chips, driven by innovations in artificial intelligence (AI), the Internet of Things (IoT), and cloud computing, highlights the strategic importance of Vietnam’s initiative. By building domestic production capabilities, Vietnam is not only addressing its internal needs but also laying the groundwork to become a key contributor to the global semiconductor value chain.

The establishment of this manufacturing plant showcases Vietnam’s bold strategy to reshape its economic future through innovation. Recognizing the semiconductor industry’s reliance on cutting-edge technology and specialized expertise, the government is championing a holistic approach to workforce development. This includes cultivating domestic engineering talent, forging international partnerships for technology transfer, and enhancing global competitiveness.

A shining example of this vision is FPT Semiconductor, founded in 2022 as part of the FPT Group. Having advanced from R&D to mass production, the company’s Power Management IC (PMIC) chips are set to make waves globally, with a target of delivering 25 million chips worldwide by 2024–2025.

Conclusion

Vietnam’s proactive measures to establish a semiconductor chip manufacturing plant signify a transformative moment for the country’s high-tech sector. This project not only accelerates domestic technological advancement but also aligns Vietnam with the global movement toward a more interconnected and digital future. With focused investments, strategic workforce initiatives, and international collaborations, Vietnam is poised to emerge as a competitive force in the global semiconductor industry.

[1] https://vneconomy.vn/cong-nghiep-ban-dan-viet-nam-buoc-vao-thoi-ky-khoi-sac-moi.htm

[2] Sẽ xây dựng nhà máy sản xuất chip đầu tiên tại Việt Nam và của Việt Nam

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