Vietnam Plans to Establish Over 20 Semiconductor Plants
According to a recent article published on the Vietnam Government News website, on September 21, Prime Minister Pham Minh signed Decision No. 1018/QD-TTg, issuing Vietnam’s strategy and vision for the development of the semiconductor industry, with short-term goals until 2030 and long-term projections until 2050.
In this strategic plan, Vietnam outlined five specific tasks and measures, including: (1) Developing specialized chips; (2) Promoting the development of the electronics industry; (3) Developing human resources and attracting talent in the semiconductor field; (4) Attracting investment in the semiconductor sector; and (5) Other relevant tasks and measures.
Goals for 2050: 3 Manufacturing Plants, 20 Packaging and Testing Facilities
Overall, this strategy aims to develop Vietnam’s semiconductor industry through a three-phase roadmap.
Phase 1 (2024-2030):
Vietnam will leverage its geographical advantages and strengths in semiconductor human resources to selectively attract foreign direct investment (FDI), becoming one of the global centers for semiconductor talent. The country aims to build foundational capabilities across the entire semiconductor value chain, including research, design, manufacturing, packaging, and testing.
During this phase, the Vietnamese government plans to selectively attract FDI, with the goal of establishing at least 100 design companies, one small semiconductor chip manufacturing plant, and 10 packaging and testing facilities. The strategy also includes developing specialized semiconductor products for various industries, achieving annual semiconductor industry revenue of over USD 25 billion, with a value-added contribution of 10-15%.
Additionally, the annual revenue of Vietnam’s electronics industry is expected to exceed USD 225 billion, with a value-added contribution of 10-15%. The workforce in the semiconductor sector is projected to surpass 50,000 engineers and university graduates, with appropriate structure and quantity to meet development needs.
Phase 2 (2030-2040):
Vietnam aims to become one of the global centers for the semiconductor and electronics industries, combining self-reliance with foreign direct investment to promote industrial development.
During this period, Vietnam will continue to combine domestic self-reliance with FDI to further develop its semiconductor industry. The goal is to establish at least 200 design companies, 2 semiconductor chip manufacturing plants, and 15 packaging and testing facilities. The country will gradually achieve autonomy in specialized semiconductor product design and production.
At the same time, annual semiconductor industry revenue is expected to reach over USD 50 billion, with a value-added contribution of 15-20%. The annual revenue of the electronics industry is projected to exceed USD 485 billion, with a value-added contribution of 15-20%. The workforce in the semiconductor industry is expected to grow to over 100,000 engineers and graduates, with an appropriate structure to meet development needs.
Phase 3 (2040-2050):
Vietnam plans to become one of the leading countries in the global semiconductor and electronics industries and to master research and development methods in these fields.
During this phase, Vietnam plans to establish at least 300 design companies, three semiconductor chip manufacturing plants, and 20 packaging and testing facilities, with the goal of mastering semiconductor research and development. The country aims to achieve annual semiconductor industry revenue exceeding USD 100 billion, with a value-added contribution of 20-25%.
The electronics industry’s annual revenue is expected to surpass USD 1.045 trillion, with a value-added contribution of 20-25%. Vietnam’s semiconductor workforce will be structured and scaled appropriately to meet development needs, while the country will work to further refine its semiconductor ecosystem, enabling greater autonomy and leadership in certain stages of the production chain.
Conclusion
In recent years, Vietnam has attracted significant investment from global semiconductor giants, achieving considerable success. Companies such as Samsung Electronics, Intel, ASE, Amkor, Texas Instruments, NXP, ON Semiconductor, Qualcomm, Renesas Electronics, Marvell, Infineon, and Synopsys have all invested in Vietnam.
Vietnam has designated semiconductors as one of nine national-level products and listed the sector as a key industry for national development over the next 30-50 years. Despite the government’s confidence in its semiconductor development strategy, it faces challenges such as power shortages, competitive salaries for talent, and a weak technological foundation.
