Vietnam AI Processor Chips Market Size and Forecast by Type, Node Type, End User Application, and Distribution Channel: 2019-2033

Vietnam AI Processor Chips Market Outlook

Vietnam AI processor chips market is witnessing a transformative evolution, emerging as one of Southeast Asia’s most promising high-tech frontiers. Propelled by escalating global demand for edge AI, cloud inference, and intelligent IoT solutions, the Vietnamese government has responded with a strategic national agenda to position the country as a next-generation semiconductor powerhouse. As per David Gomes, Manager – Semiconductor, the Vietnam AI processor chips market is poised to surpass $709 million by 2033. This acceleration stems from the convergence of four major forces: geopolitical realignments, surging FDI inflows, a domestic talent surge, and public-private investments in AI chip design, packaging, and R&D capabilities.

Vietnam's aggressive move into the AI processor chips segment is shaped by its unique position in the global supply chain. As the U.S. and its allies diversify their tech dependencies away from China, Vietnam is benefiting from a wave of reshoring initiatives. Major chipmakers including Intel, Qualcomm, Marvell, and Samsung are investing in Vietnam’s talent, infrastructure, and policy stability. Intel Products Vietnam (IPV), the company’s largest global assembly and test site, has exported over $90 billion in chips since 2010, forming the core of Vietnam’s semiconductor footprint. The facility is expected to play a pivotal role in packaging and testing next-gen AI processors optimized for both inference and training workloads.

Backed by the Ministry of Finance and the Ministry of Information and Communications, Vietnam is developing the “AI for All” workforce initiative in collaboration with Intel and the National Innovation Center (NIC). The initiative aims to train 10,000 AI engineers in advanced semiconductor and machine learning technologies by 2027. These engineers will support the growing ecosystem of fabless design startups and academic research centers focused on edge inference processors, low-power AI accelerators, and neuromorphic computing chips. Moreover, a $500 million investment to build Vietnam’s first government-backed semiconductor fab will initially focus on AI-specific chips, particularly those needed in 5G, autonomous vehicles, surveillance, and healthcare diagnostics.

As David Gomes notes, Vietnam is strategically moving toward a fabless AI chip development model, similar to global leaders like NVIDIA, ARM, and Cerebras, while building a solid backend infrastructure for packaging and testing through companies such as CT Semiconductor and Amkor. CT Semiconductor’s locally owned chip backend facility, now in phase two of its expansion, aims to produce 100 million chips annually by 2027, with a significant portion focused on AI-capable microcontrollers and domain-specific AI accelerators.

Policy and regulatory clarity have also bolstered investor confidence. In 2023, the Vietnamese government rolled out 30% direct funding grants, land incentives, and zero-duty import policies for AI chip development equipment. These incentives attracted major players like FPT and Viettel, with the latter having developed Southeast Asia’s most advanced 5G AI chipset, integrating real-time signal processing and deep learning models into its baseband processor.

Vietnam AI processor chip market is also benefiting from strategic U.S. partnerships under the Comprehensive Strategic Partnership framework signed in 2023. With chip exports to the U.S. growing by 75% year-over-year, reaching $562.5 million in early 2024, AI-specific chips now constitute a growing share of the total semiconductor exports. The government’s roadmap projects three semiconductor fabs and 20 packaging and testing facilities by 2050, with AI processing expected to account for 30-35% of chip design revenues.

Executive insights point to Vietnam’s long-term ambition to become the “AI chip brain” of Southeast Asia. Nguyen Chi Dung, Minister of Planning and Investment, recently remarked that “Vietnam’s future competitiveness in the digital economy will depend on its ability to master AI at the silicon level.” This vision is being realized through an integrated approach combining education, infrastructure, and international alliances. Additionally, Singapore and Malaysia—both leading in advanced semiconductor manufacturing—are engaging with Vietnam on regional co-fabrication models and talent exchange for AI chip co-design.

Despite these positive indicators, Vietnam faces notable challenges: a limited number of senior-level AI chip architects, slow adoption of EDA tools in universities, and global equipment shortages. However, with foreign players pledging sustained engagement, these gaps are narrowing. For example, Synopsys and Cadence have initiated partnerships with Vietnamese engineering schools to fast-track exposure to AI chip simulation tools and RTL design methodologies.

In essence, Vietnam AI processor chips market is moving beyond the role of a passive assembler to that of an active innovator, building vertically integrated capabilities from chip design to edge deployment. As AI workloads demand more localized inference, privacy-aware computation, and power-efficient edge solutions, Vietnam is positioning itself as an essential node in the global AI semiconductor map.

Author: David Gomes (Manager – Semiconductor)

*Research Methodology: This report is based on DataCube’s proprietary 3-stage forecasting model, combining primary research, secondary data triangulation, and expert validation. [Learn more]

Vietnam AI Processor Chips Market Scope