Vietnam on the cusp of major opportunity to develop semiconductor industry

Vietnam has all the necessary conditions in terms of human resources, infrastructure, and policies to become an attractive destination for investors in the global semiconductor industry, Minister of Planning and Investment Nguyen Chi Dung stated at the opening of SEMIExpo Vietnam 2024 on November 7.

Under the theme, 'Elevating Vietnam to the Global Semiconductor Supply Chain', the two-day event, the first and largest of its kind in Vietnam, is being held by the National Innovation Centre (NIC) under the Ministry of Planning and Investment, the Semiconductor Industry Association (SEMI). This is a global organisation with more than 3,000 member companies, and 1.5 million professionals in semiconductor and electronics design, manufacturing, and supply chains worldwide.

Dung, who is also Deputy Head of the National Steering Committee for Semiconductor Industry Development, affirmed that SEMIExpo Vietnam marks an important milestone in integrating into the global semiconductor value chain. This is an industry regarded as the "heart" of modern technology and a foundation for the digital economy.

The exhibition, along with several sideline workshops and activities, will serve as an opportunity to connect Vietnam with the global semiconductor sector. It showcases its potential and advantages to international semiconductor companies and opens up opportunities for the country to participate in various stages of this key industry, he stated.

Facing complex geopolitical challenges, countries around the world are looking to diversify their supply chains and secure reliable sources for essential components. The minister highlighted that Vietnam is in a strong position to attract semiconductor investment thanks to its political stability, rapid economic growth, along with a young, skilled workforce.

To support this vision, the Vietnamese government has introduced a strategic development plan for the semiconductor sector, with ambitious targets stretching to 2050. By 2030, the country aims to become a global hub for semiconductor talent and by 2040, it seeks to position itself as a major centre for semiconductor manufacturing.

To achieve these goals, Vietnam is prioritising the development of a highly skilled workforce. By 2030, the country plans to train at least 50,000 engineers at the university level or higher, alongside 1,300 specialised faculty members and establish a network of laboratories meeting national standards.

The Ministry of Planning and Investment is actively working with international organisations and companies, including Cadence and Synopsys and leading universities to update curricula and integrate advanced software tools to meet the industry’s evolving demands.

A new decree for an Investment Support Fund in the semiconductor sector is expected to be issued in 2024. High-tech parks in Hanoi, Ho Chi Minh City, Da Nang and the NIC are equipped with modern infrastructure and ready to support investors with preferential policies.

The goal is not only to join the global value chain but to establish a robust semiconductor ecosystem that makes Vietnam an attractive and self-sustaining industry hub in the region and the world, Dung said.

KC Ang, SEMI SEA Regional Advisory Chairman and GlobalFoundries Asia President, affirmed Vietnam's growing role in the semiconductor supply chain. According to SEMI, the country’s semiconductor market has reached 18.23 billion USD in 2024, with a compound annual growth rate (CAGR) of 11.48% in recent years.

Vietnam is on the cusp of a major opportunity to deeply engage in the semiconductor industry and has clearly demonstrated its ambition to become a key link in the global semiconductor supply chain, he stated.

SEMIExpo Vietnam 2024 is drawing the participation of more than 5,000 delegates and 100 booths of major semiconductor technology corporations in the world and Vietnam such as Cadence, Qualcomm, Intel, Qorvo, Dassault Systemes, Siemens, Tektronix, FPT and Viettel.

During the event, organisations can promote investment opportunities, the development of the industry in Vietnam, update the world’s advanced technology trends, and participate in dialogues with State management agencies.

At the event, NIC and SEMI also exchanged a cooperation agreement aimed at promoting the development of Vietnam's semiconductor industry.