Vietnam on the way to becoming a semiconductor power: opportunities and challenges!

Vietnam on the way to becoming a semiconductor power: opportunities and challenges!

On June 13, 2025, Mr. Nguyen Xuan Phu, Chairman of SUNHOUSE Group, took the opportunity during the workshop "New Chapter of Semiconductor Industry - Opportunities for Vietnam" in Hanoi to talk about the challenges facing Vietnam's semiconductor industry. He emphasized the need for serious investments to ensure the country's international competitiveness. Despite heavy investments, major Korean semiconductor companies have suffered repeated losses, highlighting the risks in this sector.

A central topic of the workshop was the high initial investments required to set up the infrastructure in semiconductor production. A testing machine is estimated to cost around VND50 billion, while the total cost of building a factory can be up to US$200 million. Successful examples from countries such as Taiwan, China and South Korea that are investing billions in chip production serve as a reference for Vietnam's efforts to create a similar success story.

Urgent need for action

Phu identified three critical factors for success in the semiconductor industry: capital, policy and skilled personnel. He called for drastic measures to be taken within the next two to three years so as not to miss Vietnam's opportunity in the semiconductor industry. Cao Dai Thang, Chairman of INTECH Group, pointed out that many projects fail due to high initial investments and advocated a methodical approach.

In addition, Le Nam Trung, deputy director of the Information Technology Industry Department, emphasized the need for better synchronization between policy and practical measures. Currently, there are various obstacles such as lack of coordination and delayed communication of policy measures that are holding back progress. The direct connections between semiconductor policy and national security, socio-economic strategy, and long-term competitiveness of Vietnam illustrate the complexity of the situation.

Rise to semiconductor power

Vietnam has the potential to become a major player in the global semiconductor market. The trend towards products with “Made in Vietnam” instead of “Made in China” is encouraged by the geopolitical changes, especially the chip war, supported by the USA. Well-educated engineers in Vietnam are available at comparatively low wages, making the country attractive to international companies.

Numerous semiconductor packaging and design companies from the USA, Germany, Japan, South Korea and Taiwan have settled in Vietnam. The salary for Vietnamese engineers, which is around USD 8,000 per year, is significantly lower than in other Asian countries, which is leading to more companies moving there. For example, Intel operates its largest assembly, packaging and testing facility in Vietnam, and companies such as Infineon Technologies and Renesas Electronics have established significant facilities in the country.

Future prospects for the semiconductor industry

The Vietnamese government plans to train a total of 50,000 semiconductor engineers by 2030 to meet future needs. The largest foreign presence in the semiconductor industry in Vietnam comes from the United States, including companies such as Microchip, Marvell and Qualcomm. These companies are actively expanding infrastructure and capacity in Vietnam.

Another significant step in the development of Vietnam's semiconductor industry is Amkor's new factory, which opened in October 2023. The US CHIPS Act also provides financial support for the semiconductor industry in Vietnam, which could significantly expand opportunities for jobs and technological advancements in the region. It is believed that this initiative could eventually create more jobs in Vietnam than in the United States itself.

In conclusion, Vietnam is well on its way to consolidating its position in the global semiconductor industry. With targeted investments, a clear political strategy and the training of qualified specialists, the country could become one of the leading semiconductor locations in the world. The Vietnamese government's dynamism and ambitious plans could be crucial in creating the right conditions for a thriving business environment.