- Messages
- 556
- Reactions
- Nation of residence
-
- Nation of origin
-
Vietnam’s role in the global chip race
BREAKING NEWSCallender Breaking News a day agoVietnam’s role in the global chip race
The world’s leading chip corporations such as Intel and Samsung are actively present in Vietnam in the context of the global semiconductor race heating up.
Follow Global Timeswhile the wave of production line transfer from China to Vietnam is still attracting much attention, recently, Vietnam continues to become the focus of the semiconductor industry when Samsung announced its production plan. Semiconductor components from July 2023.
With its role and influence in the global market, Samsung’s latest action will promote the strong development of Vietnam’s semiconductor industry in the future.
From an expert perspective, Xinmou Research analyst Gu Wenjun said that the world is fiercely competitive in the semiconductor industry. Southeast Asian countries are benefiting from attracting many international corporations to invest. “In which, Vietnam is becoming a new destination for the semiconductor industry with industrial parks specializing in chip testing and packaging,” said Mr. Gu Wenjun. Global Times.
Global Times Experts also quoted experts as saying that Vietnam is becoming an important part of the global supply chain of the semiconductor industry and has the ability to compete with China.
According to a report by research firm Technavio, the semiconductor market in Vietnam is expected to grow by 1.65 billion USD in the period 2021 – 2025 with a compound annual growth rate of about 6.52% per year. . “The increase in consumer demand is the direct cause of the strong growth of semiconductor factories in Vietnam, attracting FDI capital from many foreign enterprises in recent years. Vietnam is known as a emerging market in Asia in the semiconductor sector,” said Technavio.
Besides Samsung, Vietnam is also home to Intel’s largest assembly and testing factory. Intel Products Vietnam (IPV) is invested 1.5 billion USD, has more than 2,800 employees and is the largest American high-tech company in Vietnam. As of 2021, IPV has shipped more than 3 billion products to Intel customers globally.
At the end of May, Intel honored IPV for its innovations in improving substrate processing at its assembly and testing plants, helping Intel successfully add millions of chips to the market, making an important contribution to the success of Intel. important to help the company overcome the global chip crisis.
Kim Huat Ooi, Vice President and General Director of Intel Products Vietnam said: “This initiative helps Intel complete chip assembly 80% faster and supports substrate suppliers who are facing shortages. supply shortage”. The new approach of the Intel Vietnam factory helps it add millions of chips every year, opening the prospect of increasing more than $2 billion in profit for Intel.
In addition to the two giants Samsung and Intel, many big semiconductor companies in the world are also setting up factories in Vietnam, such as USI Electronics, a subsidiary of Taiwan’s ASE Semiconductor or Japan’s Renesas Electronics.
According to Gu Wenjun, Vietnam’s advantage lies in its large labor market and cheap land. Steve Long, general manager of the Asia-Pacific and Japan region of Intel, said: “The political and social environment is stable, trade and investment policies are increasingly liberalized, and the labor force is becoming more and more liberal. Young and talented movements are the reason why Vietnam is so attractive.” Mr. Long said that Vietnam is fully capable of setting up the necessary infrastructure and policies to support advanced manufacturing activities.
However, the current state of Vietnam’s semiconductor industry also reflects the general situation of Southeast Asia in this field. Manufacturing facilities in the region are simply assembling finished products and exporting components that are of low value in the supply chain. Even Malaysia – the country with the region’s most developed semiconductor industry – is struggling to switch from a cheap chip foundry to designing and manufacturing higher-end chips.
Despite the great potential, experts also pointed out challenges for Vietnam’s semiconductor industry. Follow Technavio, one of the biggest barriers today is the lack of highly skilled labor. As an example of the shortage of the domestic chip industry, Mr. Nguyen Anh Thi, Head of the Management Board of Ho Chi Minh City Hi-Tech Park said that the city is one of the leading places in the country in the field of semiconductors, but only about approx. 1,000 IC engineers, 2,000 – 3,000 embedded system engineers. “The current number of 1,000 IC engineers is not enough to meet the demand in this field, which requires tens of thousands more people to have a high-quality workforce in this industry,” Mr. Thi said.
