Leading semiconductor manufacturers are increasingly expanding their operations in Vietnam as a global race heats up.
The country has stepped into the spotlight after Samsung, one of the top manufacturers announced plans to start producing ball grid array products at its plant in the northern Thai Nguyen Province in July 2023. The move would raise Vietnam’s profile in the micro conductor industry thanks to Samsung’s scale and impact, insiders said. "Vietnam is becoming a new destination for the micro conductor's industry, thanks to its industrial zones specializing in testing and circuit packaging", Gu Wenjun, chief analyst at Shanghai market research firm ICwise, told the Chinese newspaper Global Times. Vietnam’s own chip market has the potential to grow by US$1.65 billion by 2025, U.S. market research company Technavio said.
The growing use of the internet of things is one of the major drivers of the growth, it added. Vietnam is also home to a $1.5-billion Intel plant, the largest in the U.S. tech giant’s worldwide manufacturing network. Speaking to VnExpress in May, Intel's general manager for the Asia Pacific and Japan, Steve Long, said Vietnam’s stable business environment and young labour force have helped Intel overcome the semiconductor shortage crisis. But Technavio said Vietnam’s chip industry lacks a skilled labour force and still mostly performs low-value-added tasks.
There are only 1,000 integrated circuit engineers and 2,000-3,000 embedded system engineers in HCMC despite it being Vietnam’s hub for semiconductors. "The current number [of engineers] cannot meet the demand of the industry -- which requires tens of thousands of skilled workers", Nguyen Anh Thi, head of the Saigon Hi-Tech Park, said.
Source: CCIPV / VnExpress