Vietnam's semiconductor market is poised to grow by $6.16 billion during 2020-2024, progressing at a compound annual growth rate of almost 19 per cent, according to market research firm Technavio.
|Vietnam's semiconductor market is set to see impressive growth over the next couple of years |
The report found that the semiconductor market is fragmented with several players occupying the market and the degree of fragmentation will accelerate during the forecast period. Some of the major vendors of the semiconductor market in Vietnam include Broadcom Inc., Hitachi Ltd., Intel Corp., NXP Semiconductors NV, Qualcomm Inc., Samsung Electronics Co., Ltd., SK Hynix Inc., STMicroelectronics NV, Texas Instruments Inc., and Toshiba Corp.
The growing use of the Internet of Things will offer immense growth opportunities. To leverage the current opportunities, market vendors must strengthen their foothold in fast-growing segments while maintaining their positions in slower ones.
In Vietnam, the semiconductor industry is deemed to be a platform to facilitate the development of other industries and was named among the nine national products to convert sci-tech achievements into high value-added commercial goods.
To develop the semiconductor industry, the government has allocated $3.2 billion to set up Integrated Circuit Design Research and Education Center, Saigon High-Tech Park Labs, and two Integrated Circuits R&D centres, and launched the first Integrated Circuit Development Programme in 2009.
The programmes provided training to electronic engineers to turn them into microchip designers and incubated over 30 domestic technology firms. Under the programme, in 2012-2017, some local chips have been successfully commercialised.
Indeed, Vietnam has attracted more semiconductor companies. In January, Danang Hi-Tech Park Management Board also granted a license to Hayward Quartz Technology from the US to develop a semiconductor factory with a total investment capital of $110 million. Hayward Quartz Technology is from the Silicon Valley in the US. The company is a leading supplier supporting all major original equipment manufacturers in the semiconductor business segment.
Also in the same month, Intel Corporation has invested a further $475 million in Intel Products Vietnam. This new investment comes in addition to Intel’s $1 billion investment to build a state-of-the-art chip assembly and test manufacturing facility in Saigon Hi-Tech Park (SHTP) that was first announced in 2006. This takes Intel’s total investment in its Vietnam facility to $1.5 billion.