Vietnam aims to have one chip fab by 2030, semiconductor industry revenue to reach $25 bln

Vietnam has set a target of having one small-scale semiconductor chip fabrication plant and 10 assembly, packaging and testing (APT) factories by 2030 as the country seeks to deepen its engagement in the global supply chain.

The Southeast Asian country also aims to develop several specialized semiconductors in a number of sectors, according to the country's semiconductor development strategy until 2030, with a vision for 2050, signed off by the prime minister last Saturday.

Vietnam currently has no semiconductor fabrication plant, while several chip giants like Intel, Amkor Technology, and Hana Micron have operational APT plants here.

Selective attraction of foreign direct investment (FDI) in the semiconductor industry is considered a critical approach. The country aims to have at least 100 semiconductor design companies by 2030.

Annual revenue from the semiconductor industry is projected to reach $25 billion by 2030, and that from the electronics industry is targeted at $225 billion.

The corresponding figures are set at $50 billion and $485 billion during the 2030-2040 period; and $100 billion and $1,045 billion in the next decade, notes the strategy.

To meet the target, Vietnam will implement the strategy in three phases. In the first phase, stretching from 2024 to 2030, the government envisions having some 50,000 engineers working in this industry and added value in the country reaching 10-15%.

In the second phase, from 2030 to 2040, Vietnam will strive to combine internal strengths and FDI, aiming to have at least 200 design companies, two fabrication plants, and 15 APT plants.

The workforce for the industry is set to double to 100,000 engineers and graduates.

In the third phase (2040-2050), it aims to have at least 300 design companies, three fabrication plants, and 20 APT factories, mastering R&D in the semiconductor industry.

The strategy envisions Vietnam’s semiconductor ecosystem will be self-reliant and lead in a number of segments of the supply chain.

Tasks and measures

To achieve the above ambitious goals, the strategy outlines five tasks and a series of solutions.

Among them, the country will concentrate on R&D of core technologies and specialized chips, and develop a domestic semiconductor ecosystem, in partnership with strategic partners.

The government will “issue special incentives, and investment and financial support to build a small-scale, high-tech chip fabrication plant to serve needs of research, design, and production of semiconductor chips”.

It will also pay heed to developing the electronics industry and tech workforce, while attracting talent and foreign investors.

To ensure the strategy’s success, the government will set up a national steering board for semiconductor development to be led by the prime minister, in addition to a specialist team for the chip industry led by the information and communications minister.

Spending will be increased for electronic item and chip manufacturing and research activities. International partnerships in the semiconductor industry will be strengthened.