Aniday Industry Insight #1: 5 Must-Know Facts About Vietnam's Booming Semiconductor Industry

While the term 'semiconductor' might not resonate with everyone, 'computer chips' certainly does. The ongoing tech rivalry between China and the US has thrust this critical industry into the spotlight. Semiconductors are the backbone of the modern economy, powering everything from household appliances to advanced military systems.

Vietnam is at the forefront of the semiconductor industry's surge. Whether you're playing catch-up with the latest industry buzz or pondering Vietnam's position among Southeast Asian peers, fear not. Aniday is your trusted source for in-depth insights and updates.

1. Vietnam Seizes Opportunities in the Global Semiconductor Wave

The semiconductor industry is shifting, with global demand projected to hit $600 billion by 2024. China is losing prominence, and other Asia countries are emerging as the dominant force.?

Significant investments are pouring into Southeast Asia, with Singapore, Malaysia, and Vietnam capturing the majority of these projects. By 2024, Southeast Asian nations accounted for half of all US chip imports, underscoring their rising influence in the global semiconductor market.

Vietnam, a relatively new entrant, already shows great signs of potential and scale. To be more specific, Vietnam's semiconductor industry resurfaced in the late 1990s with the establishment of chip design training offices, marking over three decades of our journey filled with highs and lows.?

Recently, with leveraging existing infrastructures and a skilled labor force, many recent developments are expansions of well-established, proven facilities. This presents a significant opportunity for emerging markets like Vietnam to join the global supply chain. However, with only around 5,000 engineers, Vietnam's presence in this hundred-billion-dollar market remains minimal.

2. 2 out of 3 global major chipmakers invest in Vietnam

• Intel, a US semiconductor manufacturer, has invested a total of over $1.5 billion in its factory in Vietnam. Today, Vietnam hosts its largest assembly, testing, and packing plant, accounting for over 50% of its global production. In November 2023, Intel also confirmed their plans to expand investment in Vietnam, emphasizing the great potential of Vietnam in this industry.?
• Samsung - a South Korean electronic devices producer,? increased its investment by an additional $1.2 billion in 2023, raising its total investment in Vietnam to 22.4 billion USD.?
• The market has also witnessed the presence of Hana Micron Vina, Amkor Technology, Synopsys, Marvell, and many other companies actively investing in these projects.

The entry and investment of the major players in the semiconductor industry have emphasized that Vietnam possesses the potential, resources, and capability to be a promising destination attracting more international investments. Moreover, it highlights Vietnam’s prospective capacity to proactively produce domestic chip products.

3. Chip Giant Expands Collaboration with Leading Tech Companies in Vietnam

NVIDIA partnered with VNG, a Vietnam tech unicorn, enhancing ties between the US chip giant and Asia. VNG has equipped a data center in Thailand with 1,000 Nvidia graphics processing units, offering cutting-edge AI services and software solutions to customers leveraging Nvidia products.

NVIDIA has also signed a strategic cooperation agreement with FPT to establish an AI Factory, with an expected investment of up to $200 million, aimed at building a sovereign AI research and development cloud computing platform in Vietnam.

4. "Make in Vietnam" Chips - From Concept to Reality

Aniday is thrilled to hear about Vietnam's groundbreaking achievement in unveiling domestically produced chips. It's a monumental leap forward for the nation's technological prowess.

In 2022, FPT Semiconductor unveiled Vietnam's first line of microchips tailored for IoT applications in the medical sector, marking the country's entry into commercial chip production. In 2023, Viettel Group announced a breakthrough in chip technology with the successful research of a 5G chip. In 2024, Marvell Technology Inc. presented chip samples developed with Marvell Vietnam's participation, showcasing Vietnamese ingenuity in cutting-edge technology.

With a flurry of investments, partnerships, and recent breakthroughs, Vietnam's demand for skilled labor in this field is soaring. Besides investments in chip research and manufacturing, the semiconductor industry is benefiting from investments in education to improve the workforce's professional capacity.

The Vietnamese government has committed $1 million to educate 50,000 semiconductor engineers. Additionally, the National Innovation Center has partnered with Google to provide annual scholarships. Beginning in 2024, around 40,000 scholarships will be awarded each year to students nationwide in Industry 4.0 fields, up from the current 30,000.?

Moreover, we're witnessing proactive initiatives from the corporate sector to tackle this challenge head-on. After partnering with Nvidia, FPT will integrate Nivdia’s training into the regular curriculum at its university and high school branches to develop high-tech human resources. FPT aims to have at least 30,000 students and pupils access the program within 5 years.?

5. The Role of Headhunting in Vietnam’s Semiconductor Industry

Projections suggest the semiconductor industry in Vietnam will require approximately 20,000 skilled professionals in the next five years and around 50,000 within the next decade.

Businesses must play a pivotal role by attracting and recruiting top talent, collaborating with universities, and offering scholarships to exceptional students. Employers can also partner with headhunter agencies like Aniday to tap into global talent pools, transcending geographic limitations.

Aniday has supported domestic and global semiconductor companies in recruiting outstanding talents at all levels. Whether you're a company seeking top-notch talents in the semiconductor industry or a skilled professional looking for opportunities in this dynamic field, look no further than Aniday. We're the ultimate hub connecting employers with exceptional talent in diverse industries.

Explore more on our website and see how Aniday can help you navigate the ever-evolving semiconductor landscape.

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