Vietnam’s inaugural foray into microchip production was announced, as highlighted by the EE Times, an esteemed American electronics industry magazine, in a 2008 article.
The nation has once again pivoted its focus to the semiconductor sector, particularly through the “Make in Vietnam” initiative, aspiring to achieve complete self-sufficiency in chip design and production.
Policymakers aspire to carve a niche for the country in the global semiconductor supply chain, an arena typically dominated by nations with per capita incomes surpassing $11,000—nearly three times Vietnam’s.
Proficiency in the chip design process becomes paramount for Vietnam’s aspirations in the global semiconductor industry, especially given the limited supply of 5G chipsets.
While Vietnam boasts facilities for the latter stages of chip production, packaging, and testing, courtesy of major global corporations like Intel and Amkor, the absence of a semiconductor fabrication facility (fab) remains a challenge.
Among Southeast Asian nations capable of both chip design and packaging, only Singapore and Malaysia currently possess semiconductor fabrication facilities, according to Ernst & Young (EY).
With the majority of Vietnam’s electronics exports attributed to foreign companies (99%, as per the General Department of Customs), addressing the global chip shortage becomes a critical focal point.
To tackle the chip shortage, developed countries with advanced semiconductor industries, such as the U.S. and Japan, are expressing willingness to support Vietnam’s integration into the global market.