The semiconductors market in Vietnam is poised to grow by $6.16 billion during 2020-2024, progressing at a compound annual growth rate of almost 19 per cent during the forecast period, according to the report by global technology research and advisory company Technavio.
|Vietnam's semiconductors market is forecast to accelerate tremendously with IoT adoption |
The growth in the use of the Internet of Things (IoT) is one of the major drivers for the growth of the semiconductors market in Vietnam as it allows the transfer of data over a network without requiring human-to-computer or human-to-human interaction.
Moreover, smart devices and connected devices are embedded with software, electronic components, and sensors with computer network connection capability, which enable them to collect and transmit data. IoT devices require ultra-low-power processors which increases their performance. Therefore, the increase in power efficiency enhances the battery life of devices, which is important for mobile computing devices such as notebooks, ultra-portables, and wearables.
Additionally, IoT devices also require ICs which ensures that the microprocessor or microcontrollers start in the same condition, which protects the device. Hence, the increasing use of IoT in Vietnam will lead to the growth of the semiconductors market in the country during the forecast period.
The growing demand for high processing power for mobile and other computing devices also contributes to the growth of the semiconductors market in the consumer electronics segment. The demand for consumer electronics is high due to the availability of low-cost labour and favourable investment incentives.
In general, Vietnam's semiconductors market is fragmented, and the degree of fragmentation will remain the same during the forecast period. Samsung Electronics Co., Ltd., SK Hynix Inc., STMicroelectronics NV, Texas Instruments Inc., and Toshiba Corp. are some of the major market participants.
Although the growing use of IoT will offer immense growth opportunities, the cyclic nature of the semiconductor industry will challenge the growth of the market participants. To make the most of the opportunities, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.