Vietnam attracts nearly $12bn from global semiconductor companies
Vietnam is home to 174 foreign-invested projects active in the semiconductor industry with a total registered capital of US$11.6 billion, heard the first meeting of the national steering board for semiconductor development led by Prime Minister Pham Minh Chinh on Saturday.
The national steering board for semiconductor development led by Prime Minister Pham Minh Chinh organizes the first meeting on December 14, 2024. Photo: Vietnam Government Portal
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The National Innovation Center (NIC) in Hanoi and many hi-tech parks in Ho Chi Minh City and Da Nang City will play a key role in fueling the process of strengthening the nation’s presence in the semiconductor manufacturing chain and attracting foreign investments from global tech and semiconductor groups such as Amkor, Samsung, Hana Micron, Foxconn, LAM Research, Coherent, and Intel, the prime minister said.
The Southeast Asian nation has over 50 integrated circuit design firms with an estimated 6,000 engineers.
As many as seven chip testing and packaging factories are operational in the nation, with a workforce of some 6,000 engineers and more than 10,000 technicians.
Moreover, a series of enterprises specializing in manufacturing devices and materials for the semiconductor industry have entered the market.
PM Chinh affirmed that developing the semiconductor sector is an objective requirement, a strategic choice, and a top priority.
Vietnam is emerging as an attractive destination for semiconductor investors, engaging in some key stages in the semiconductor value chain, including designing, testing and packaging integrated circuits, and producing devices and materials aimed at serving the industry.
However, the country has yet to build a chip manufacturing facility.
The prime minister outlined several challenges facing the semiconductor industry, noting that the sector requires substantial funding, yet incentives and support policies for investors remain limited.
Infrastructure for research, training, talent development, and manufacturing is underdeveloped, while the electricity supply is unreliable.
Other issues include limited access to advanced technology and a shortage of highly skilled workers, he added.
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| Prime Minister Pham Minh Chinh. Photo: Vietnam Government Portal |
To fulfill the semiconductor development goal, it is vital to raise awareness about the importance of semiconductor, artificial intelligence, Internet of Things, and cloud computing with a strategic vision and breakthrough thinking, PM Chinh underscored.
He insisted that the country would continue to ease mechanisms and develop infrastructure to make the semiconductor pay off.
An investment supporting fund will soon be established to boost research and tech transfer activities, while Vietnam will issue suitable visa policies to encourage foreign investors to enter the country for business expansion.
Moreover, the country will step up efforts to develop chip designing, testing, and packaging centers as well as proactively join tech giants’ value chains.
Expanding the workforce, perfecting mechanisms, and investing in infrastructure are part of a comprehensive strategy for semiconductor development, he emphasized.
The prime minister tasked the Ministry of Planning and Investment with completing a decree on the establishment of an investment supporting fund and submitting it to the government as soon as possible to quickly lure foreign investors and support local firms.
The Ministry of Information and Communications and other relevant ministries and departments were assigned to develop application-specific integrated circuits and promote the electronics industry, while fostering cooperation with international partners in the semiconductor field.
The electricity supply must be guaranteed to smooth the path for semiconductor growth, he said, urging Vietnamese agencies to call on relevant U.S. authorities to remove Vietnamese companies from the list of hi-tech export restrictions.
The semiconductor workforce will be built through close collaboration between the state, universities, and firms.
