Vietnam poised to become hub in global semiconductor supply chain

November 07, 2024 | 16:00
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Vietnam is showcasing the potential to become a key link in the global semiconductor supply chain, with growing appeal in Southeast Asia, improved infrastructure, and a clear development strategy.

This was the central topic discussed by speakers at the SEMIExpo Vietnam 2024, held on 7 November at the National Innovation Centre (Hoa Lac Hi-Tech Park), organised by SEMI, a microelectronics industry association, together with the Ministry of Planning and Investment.

SEMIExpo Vietnam 2024 served as a platform for discussions on how local enterprises can elevate Vietnam's position in the global semiconductor supply chain.

The panel discussion, themed “Elevating Vietnam to the global semiconductor supply chain”, featured speakers from both domestic and international companies currently investing in the semiconductor industry.

Vietnam poised to become hub in global semiconductor supply chain
SEMIExpo Vietnam 2024 offered enterprises the chance to update themselves on the latest global technology trends in the semiconductor sector. Photo: National Innovation Centre

According to CS Chua, president and managing director of Infineon Technology Asia Pacific Pte Ltd, Vietnam is now positioned as a potential destination for semiconductor supply investment in Southeast Asia. He said, “The competition between the US and China, the post-COVID supply chain disruption, and the boom in AI are driving significant demand for semiconductor supply chain investment in Southeast Asia.”

In addition to the opportunities arising from the geopolitical context, Chong Chang Pin, vice chairman of SEMI, highlighted that Vietnam’s infrastructure is creating a favourable environment for semiconductor investment from major companies. “What I see when I come here every year is infrastructure improvements. Infrastructure is very important, especially when you're trying to build a semiconductor ecosystem,” he said.

Furthermore, Chong noted that Vietnam’s young and inquisitive population, coupled with strong technological capabilities, is also attracting positive evaluations from investors.

Providing more concrete data on the growth in both quantity and quality of Vietnam’s workforce, Quang-Dam Le, general director of Marvell Technology Vietnam, said, “In just one year, Vietnam increased its workforce by 50 per cent, rising from 300 interns and engineers to more than 460 engineers.”

These opportunities and advantages, according to Le, have been harnessed by the Vietnamese government to develop a coordinated and well-defined strategy for the semiconductor industry, as outlined in the country’s Semiconductor Industry Development Strategy for 2021-2030.

Experts believe that based on the existing advantages and development vision, Vietnam has the potential to build a regional semiconductor ecosystem. However, this will depend on the ability to capitalise on available resources and combine them with government incentives.

Michael Pham, CEO of Fab9, offered further insights, saying, “Vietnam can seize the opportunity to integrate high technology and automation into new factories, as I am currently observing the emergence of many new plants here. With the abundance of data today, it is easier to apply automation to new factories than to replicate global models in outdated facilities.”

From the perspective of domestic investors, Le Dang Dung, senior technology advisor of Sofico Group, suggested, “Their government has made a very strong commitment by securing significant financial resources for semiconductor development. One more thing to consider is that administrative procedures in Vietnam should see significant improvement.”

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By Mai Anh

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