Vietnam’s Ambitious Three-Phase Plan to Build Its Chip Ecosystem 

In phase three, between 2040 and 2050, the nation aims to build 300 design companies, three semiconductor chip manufacturing plants, and 20 packaging and testing facilities. 

The revenue is anticipated to grow beyond USD 100 billion, with a 20-25 percent value-added contribution by 2050.

After announcing the astonishing mathematical formula to bolster the semiconductor industry with a yearly turnover of $100 billion by 2050, the Vietnamese government now announces specific strategies and tasks to grow the ecosystem. The tasks include:

  • Developing cutting-edge chips.
  • Developing human resources and magnetizing talent in the industry.
  • Showcasing the development of the electronics industry.
  • Inviting big-ticket investments. 

The formula C = SET + 1, approved by Prime Minister Pham Minh Chinh, implies C is for Chips, S for Specialized, E for Electronics, T for Talent – and + 1 for Vietnam. This trick is an effort to make Vietnam a new and international semiconductor powerhouse. By the end of 2050, the nation aims to set up three large manufacturing units and 20 packaging and testing facilities via a three-phase roadmap. 

According to experts in the region, the country will utilize its geographical advantages to attract foreign investments and aim to craft foundational capabilities throughout the value chain. With the help of the FDIs, the government plans to build 100 design centers and produce specialized chips catering to numerous industrial verticals. The expected revenue is over USD 25 billion, with a value-added contribution of 10-15 percent. 

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On the other hand, the electronics industry is projected to surpass  USD 225 billion in revenue annually, coupled with 50,000 engineers and university graduates. Speaking of phase two, the country will carefully examine its self-reliance on FDI to further grow the ecosystem. The aim is to set up 200 design companies, 2 semiconductor chip manufacturing plants, and 15 packaging and testing facilities.

The annual revenue is expected to surpass USD 50 billion, with a 15-20 percent value-added contribution. In phase three, between 2040 to 2050, the nation aims to build 300 design companies, three semiconductor chip manufacturing plants, and 20 packaging and testing facilities. The revenue is anticipated to grow beyond USD 100 billion, with a 20-25 percent value-added contribution. On the other hand, the electronics industry would witness a revenue of USD 1.045 trillion, with a value-added contribution of 20-25 percent. 

Over the past few years, the country has attracted investments from major companies such as Samsung Electronics, Intel, ASE, Amkor, Texas Instruments, NXP, ON Semiconductor, Qualcomm, Renesas Electronics, Marvell, Infineon, and Synopsys, but the industry continues to be worried by power shortages, competitive salaries for talent, and a weak technological foundation.

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