Vietnam Semiconductor Market Size | 2019-2032

Vietnam Semiconductor Market Growth and Performance

• Vietnam semiconductor market size is expected to witness substantial growth in the coming years, expanding at a CAGR of 7.2 % from 2024 to2032, to achieve market value of US$ 5.96 Billion by 2032.
• The advanced node segment stood at US$ 1.31 Billion in 2023.

Vietnam Semiconductor Market Outlook

The Vietnam semiconductor market is rapidly emerging as a key player in the global semiconductor industry, driven by strategic government policies, foreign investments, and a skilled workforce. With a comprehensive roadmap to become a global semiconductor hub by 2050, the Vietnam semiconductor market growth is reshaping the country’s industrial landscape and positioning it as a critical node in the global supply chain.

The Vietnam semiconductor market outlook is highly promising, with a clear three-phase roadmap to achieve global leadership:

• Phase 1 (2024-2030): Focus on attracting FDI, establishing 100 design companies, one semiconductor manufacturing plant, and 10 packaging and testing facilities. The goal is to generate $25 billion in annual revenue by 2030.
• Phase 2 (2030-2040): Strengthen investments with two additional chip manufacturing plants and 15 packaging and testing facilities, targeting $50 billion in annual revenue.
• Phase 3 (2040-2050): Achieve self-sufficiency and global leadership with 300 design companies, three chip fabrication plants, and 20 packaging and testing facilities, aiming for $100 billion in annual revenue.

This roadmap underscores the Vietnam semiconductor market development, emphasizing specialized chip production, workforce training, and international collaboration.

Vietnam Semiconductor Market Trends and Dynamics

One of the key Vietnam semiconductor market trends is the influx of foreign direct investment (FDI) from global tech giants. Companies like Intel, Samsung, Amkor, and Hana Micron have established significant operations in Vietnam, focusing on chip design, packaging, and testing. The Vietnamese government has also launched the National Semiconductor Strategy, aiming to attract $25 billion in annual revenue by 2030 through the establishment of 100 design companies, one semiconductor manufacturing plant, and 10 packaging and testing facilities. The Vietnam semiconductor industry is bolstered by a young, tech-savvy workforce and robust infrastructure. The government has launched the Human Resources Development Programme, aiming to train 50,000 semiconductor engineers and develop 1,300 internationally-qualified lecturers by 2030. Additionally, initiatives like the U.S.-Vietnam Comprehensive Strategic Partnership and a $13.8 million grant from the U.S. Department of State are driving talent development and innovation.

Vietnam’s strategic location within ASEAN and its proximity to major markets like China, Japan, and South Korea further enhance its appeal. The country’s industrial real estate market is also thriving, with 38,000 hectares of industrial land across 203 operational industrial zones, reflecting a 5% year-on-year increase. Despite its rapid growth, the Vietnam semiconductor market faces challenges such as power shortages, weak technological infrastructure, and competitive salaries. However, the government is addressing these issues through initiatives like the National Steering Committee for Semiconductor Industry Development and attractive tax incentives for high-tech projects. The Vietnam semiconductor market development is also supported by international collaborations with companies like Qualcomm, Google, Meta, and LAM Research. These partnerships aim to enhance Vietnam’s semiconductor capabilities and integrate the country more deeply into the global value chain.

Vietnam Semiconductor Market Competitive Landscape

The Vietnam semiconductor market competitive landscape is further strengthened by partnerships with leading global players. For instance, NVIDIA has collaborated with Vietnam to develop AI and semiconductor capabilities, while Yamato Holdings plans to establish an AI research lab and logistics center in Bac Ninh Province. These initiatives highlight Vietnam’s growing role in the global semiconductor ecosystem.

Vietnam Semiconductor Market Scope