{"id":25988,"date":"2026-09-29T17:53:47","date_gmt":"2026-09-29T10:53:47","guid":{"rendered":"https:\/\/b-company.jp\/?p=25988"},"modified":"2026-09-29T17:53:47","modified_gmt":"2026-09-29T10:53:47","slug":"vietnam-semiconductor-industry-market-overview-and-growth-opportunities","status":"publish","type":"post","link":"https:\/\/b-company.jp\/vi\/vietnam-semiconductor-industry-market-overview-and-growth-opportunities\/","title":{"rendered":"Ng\u00e0nh b\u00e1n d\u1eabn Vi\u1ec7t Nam: T\u1ed5ng quan th\u1ecb tr\u01b0\u1eddng v\u00e0 c\u01a1 h\u1ed9i t\u0103ng tr\u01b0\u1edfng"},"content":{"rendered":"

\"B&Company-Vietnam<\/a><\/p>\n

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B&Company is the first Japanese company specializing in market research and investment consulting in Vietnam since 2008.<\/em><\/p>\n

This article is written in English and automatic translation is used for other language versions. Please refer to the English version for accurate content. Although we strive to ensure the accuracy of the original information, please check separately for each information. Interpretations and future prospects are the personal opinions of each researcher. <\/p>\n<\/div>\n\t

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The semiconductor industry is on a growth trajectory, supported by government initiatives, abundant resources, and labor costs. While still in its early stages, it is establishing itself as a major regional player.<\/p>\n

Institutions and Policies<\/strong><\/h3>\n

Vietnam is shifting from broad high-tech promotion to a strategy specifically focused on semiconductors under a series of policies. The national roadmap outlined in Decision 1018\/2024 presents the vision “C = SET + 1” (Specialized chips\u30fbElectronics\u30fbTalent\uff0bExecution), setting 2050 targets of over 100,000 engineers, 300 design and research companies, 3 fabs and 30 assembly plants, and annual sales of 100 billion USD.<\/p>\n

Complementary Decision 1017\/2024 aims to cultivate 50,000 skilled personnel by 2030 (including 42,000 engineers and 15,000 design\/research personnel). It targets establishing four national-level semiconductor research hubs (two in Hanoi, one in Ho Chi Minh City, and one in Da Nang), creating\/upgrading 18 university research centers, training 1,300 faculty members (professors, etc.), upgrading 18 university laboratories, training 1,300 faculty members (including professors), and expanding international exchange programs.<\/p>\n

The policy provides investors with a roadmap for growth. Companies focusing on chip design and EDA (Electronic Design Automation) can accelerate their launch by leveraging R&D support, talent development assistance, and collaboration with university research institutes. Meanwhile, companies engaged in assembly, testing, and packaging can improve their return on investment by combining support for production activities with joint funding for equipment investment.<\/p>\n

Market size of 21 billion USD by 2025<\/strong><\/h3>\n

The semiconductor market grew by 18% in 2024 and by 49% over the past five years. It is projected to reach approximately 21 billion USD in 2025, continuing to expand at a compound annual growth rate (CAGR) of 10% from 2025 to 2029, and is expected to reach 31 billion USD by 2029.[1]<\/a><\/p>\n

Semiconductor Market Size<\/strong><\/p>\n

Unit: Billion USD
\n\"Semiconductor<\/p>\n

Source: Statista<\/p>\n

From 2020 to 2024, integrated circuits (ICs) accounted for the majority of the market, 81% in 2020 and 85% in 2024. Other segments-optoelectronics (optical semiconductors), discrete semiconductors, and sensors\/ actuators\u2014remained flat or grew slightly, with their share of the overall market decreasing.[2]<\/a><\/p>\n

According to the Ministry of Planning and Investment (now merged with the Ministry of Finance), approximately 11.6 billion USD of 2024 sales were supported by FDI companies investing in this sector. The 174 registered FDI projects primarily involve IC design, manufacturing, and assembly. Domestic companies currently play only a limited role in back-end processes.[3]<\/a><\/p>\n

Position in the Global Supply Chain<\/strong><\/h3>\n

The semiconductor industry is generally divided into three stages: \u2460 design and research, \u2461 manufacturing (front-end), and \u2462 assembly, inspection, and packaging (back-end). Currently, Vietnam is heavily skewed towards \u2460 design and research and \u2462 back-end processes, with an extremely limited presence in \u2461 front-end fabs. Activities among companies remain fragmented, and a continuous ecosystem has not yet been formed. While many foreign companies operate offshore design and R&D bases, projects involving manufacturing and full-scale wafer processes remain scarce. Domestic companies are primarily engaged in design\/R&D and some back-end processes; involvement in front-end processes, which require advanced technology and massive investment, remains a future challenge.<\/p>\n

Major companies in Vietnam Semiconductor industry<\/strong><\/p>\n

\"Semiconductor<\/p>\n

Source: B&Company Analysis<\/p>\n

In design and research, many companies are primarily located in Hanoi and Ho Chi Minh City. Most are foreign-funded entities from Japan, Germany, China, South Korea, the US, etc., with domestic firms like FPT Semiconductor also present. These design hubs handle design intellectual property block development for global headquarters, test design, and some custom IC development. They are positioned as offshore development centers for the global supply chain, not the Vietnamese market.<\/p>\n

In contrast, the manufacturing stage currently involves companies from countries with strong semiconductor industries, such as South Korea’s Samsung and Hana Micro Vina, and China’s Micro Commercial Components. However, most focus on packaging and module production closer to the back-end process rather than front-end wafer manufacturing. Vietnam has not yet reached the stage of establishing full-fledged logic\/memory fabs. Manufacturing facilities are located in major industrial zones, producing printed circuit boards, integrated circuits, and semiconductor components. However, many represent the relocation of specific processes from existing supply chains to Vietnam.<\/p>\n

In back-end processes such as assembly, testing, and packaging, U.S. companies like Amkor and Intel maintain a significant presence. While these factories are expanding production capacity amid global demand, this remains part of the broader trend toward enhancing efficiency and diversifying locations for back-end operations. It does not mean Vietnam has established a fully integrated semiconductor supply chain within its borders. This point is crucial when considering how far Vietnam can advance into the upstream segments of the supply chain.<\/p>\n

Potential to Become a Regional Hotspot<\/strong><\/h3>\n

In 2024, FDI reached a record high of approximately 25 billion USD, a 9% increase year-on-year. Several large-scale projects were announced in the semiconductor sector, highlighting Vietnam’s role as a destination for supply chain diversification. However, the focus remains on expanding packaging and testing capabilities by existing operators and adding design centers, rather than establishing a high-end front-end fab.<\/p>\n

Semiconductor Investment Projects Under Construction <\/strong>or <\/strong>Planned<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n
Process<\/strong><\/td>\nOperator<\/strong><\/td>\nCountry of Origin<\/strong><\/td>\nInvestment Plan<\/strong><\/td>\nLocation<\/strong><\/td>\n<\/tr>\n
Design and Development<\/td>\nVictory Giant Technology<\/td>\nChina<\/td>\nInvesting 206 million USD to build a factory, scheduled for completion in 2026<\/td>\nBac Ninh<\/td>\n<\/tr>\n
Manufacturing<\/td>\nHana Micro Vina<\/td>\nSouth Korea<\/td>\nInvesting 400 million USD in 2025, raising total investment to 1 billion USD<\/td>\nBac Giang<\/td>\n<\/tr>\n
Signetics<\/td>\nSouth Korea<\/td>\nBuilding a 100 million USD factory to produce flip chips, MCM, BGA, and FBGA. Scheduled for completion in October 2025<\/td>\nVinh Phuc<\/td>\n<\/tr>\n
BESI<\/td>\nNetherlands<\/td>\nInitial 5 million USD investment in electronics component factory construction; scheduled to open in February 2024<\/td>\nHo Chi Minh<\/td>\n<\/tr>\n
Viettel<\/td>\nVietnam<\/td>\nPlans semiconductor manufacturing plant by 2030 with government support<\/td>\nUnknown<\/td>\n<\/tr>\n
Assembly, Test, and Packaging<\/td>\nAmkor Technology<\/td>\nUnited States<\/td>\nPlans to expand production capacity from 420 tons to 1,600 tons per year by October 2025<\/td>\nBac Ninh<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: B&Company Analysis<\/p>\n

These projects provide greater clarity on what Vietnam can realistically undertake. The Hana Micro Vina, Signetics, and Amkor projects all focus on back-end processes- assembly, testing, and packaging- positioned to complement existing global design and manufacturing hubs (such as South Korea and the U.S.). Vietnam is steadily progressing by starting with processes that do not require the stringent requirements of front-end operations, such as power and clean rooms. Meanwhile, while Viettel’s planned semiconductor manufacturing plant is a symbolic project, many aspects remain unclear: which process node it targets, its scale, and its intended applications (military, communications, or specific uses). It is unrealistic to expect Vietnam to establish cutting-edge fabs equivalent to those in Taiwan or South Korea in the short term. A more plausible scenario involves gradually gaining experience, starting with mature processes for specific applications.<\/p>\n

Furthermore, the activities of global companies like NVIDIA in Vietnam currently focus on AI data centers, GPU clouds, and ecosystem development. This aligns more closely with nurturing a computing infrastructure and software industry leveraging semiconductors than with semiconductor manufacturing itself. This can also be interpreted as Vietnam seeking to establish its position as a country that creates added value using chips before becoming a “country that makes chips.” Against the backdrop of US-China trade friction and the China Plus One trend, Vietnam has become a strong candidate location for companies seeking to diversify their OSAT (semiconductor back-end foundry) and mature process\u00a0operations outside China. The current practical opportunity lies in strengthening its position centered on design centers and back-end processes.<\/p>\n

Meeting between Vietnam’s Prime Minister and NVIDIA Chairman<\/strong><\/p>\n

\"Prime<\/strong><\/p>\n

Source: Vietnamnews<\/a><\/p>\n

One factor making Vietnam an attractive destination for semiconductor investment is its status as the world’s second-largest holder of rare earth reserves. As of 2024, its estimated reserves stand at 22 million tons, accounting for 18% of the world’s total[4]<\/a>. This gives Vietnam an advantage in securing critical materials for semiconductor manufacturing. Furthermore, for the 2025 academic year, several top universities, including Hanoi University of Education, Hanoi University of Science and Technology, and Hanoi University of Science, are launching specialized programs in semiconductor technology to strengthen the future talent base.<\/p>\n

Challenges<\/strong><\/h3>\n

First, the domestic semiconductor ecosystem remains underdeveloped. It lacks a broad network of domestic suppliers, chip design companies, testing laboratories, and specialized research institutions. Second, there is a shortage of highly specialized engineers in the semiconductor field. Against the government’s target of training 50,000 skilled workers by 2030, there are currently only about 5,500 chip design engineers, most concentrated in Ho Chi Minh City. This shortage is particularly acute in industrial park areas where many semiconductor companies are based, making it difficult to expand operations beyond existing hubs.<\/p>\n

Finally, within the semiconductor value chain, material constraints limit advancement into more advanced stages like manufacturing. This constraint is the availability of silver. Silver is an irreplaceable material in semiconductor manufacturing, typically extracted as a byproduct of lead, copper, gold, and nickel mining. However, mining technology is underdeveloped, making domestic silver extraction commercially unviable. Currently, Vietnam relies primarily on imports from Hong Kong (22% of imports), South Korea (21%), and India (11%). As global competition in chip manufacturing intensifies, establishing a strategic procurement plan for critical raw materials is essential.<\/p>\n

In summary, the short-term answer to the question “Can Vietnam really produce semiconductors?” is: “It already has a track record in design and back-end processes, with potential for future expansion, but advanced front-end fabs are not yet realistic.” In the medium term, a scenario is conceivable where Vietnam builds a track record starting with niche front-end processes, such as mature nodes for specific applications or small-scale processing lines for defense and communications. To achieve this, three actions are essential: (1) Expand the ecosystem around existing OSAT investments like Hana and Amkor, nurturing related suppliers and equipment maintenance firms; (2) Enhance in-house capabilities for design, EDA, and testing technologies through partnerships with companies like NVIDIA; (3) Strengthen talent supply centered on universities and research institutes while expanding experimental prototype projects. Rather than merely promoting an optimistic “hub concept,” how Vietnam executes this phased, pragmatic approach will be crucial for the future of its semiconductor industry.<\/p>\n

Read more<\/strong><\/h3>\n

Vietnam\u2019s Semiconductor Ambition: Where Japanese Firms Fit in the Value Chain<\/a><\/p><\/blockquote>\n