According to an article published on April 11 on the news site of operations management and business strategy consulting firm Tractus, Vietnam has established a significant and expanding position in ASEAN's semiconductor value chain in recent years.

The author of the article stated that the semiconductor market is predicted to grow from US $17.24 billion in 2023 to US $26.20 billion in 2027. Vietnam exemplifies this trend, particularly in terms of electrical equipment exports to the United States, which have increased dramatically since 2018.

Illustrative photo: Vietnam is making strong progress in advancing its standing in the global semiconductor supply chain. (Photo: vneconomy.vn)

In addition, the article also cites that this remarkable increase could be attributed to Vietnam's position on key international logistics routes, which include 34 ports and 15 major highways that connect to the global commerce network.

Vietnam is also a globally integrated country that has signed 16 Free Trade Agreements (FTAs) and has tight economic ties with key chip producers such as the United States, South Korea, and Japan. This presents appealing options for semiconductor companies looking to diversify production.

Vietnam has an advantage in labor expenses because of its large workforce and low cost of living. The Vietnamese government is actively promoting computer science training, aiming to train 50,000 semiconductor engineers by 2030.

Furthermore, the electronics industry (EI) is thriving in Vietnam, led by global businesses such as Samsung and Daewoo from South Korea. This industry contributes significantly to increasing the proportion of semiconductor materials used in the manufacturing of necessary electronic components.

Illustrative image. (Photo: VNA)

As mentioned in the article, the use of 3D packaging technology has transformed the industry by enhancing performance and energy efficiency. Advances in materials such as gallium nitride (GaN) and silicon carbide (SiC) are also creating new opportunities.

According to the article, the COVID-19 pandemic and US trade barriers have driven semiconductor manufacturers to diversify their operations, with Vietnam emerging as an appealing option. Vietnam is capitalizing on this trend by providing favorable conditions for Foreign Direct Investment (FDI) projects, particularly in the high-tech sector.

In addition to foreign investment, Vietnamese technology businesses actively shape the industry's future. Notably, FPT Group, through its subsidiary FPT Semiconductor Joint Stock Company (FPT Semiconductor), has entered the domestic nonmanufacturing industry.

The article states that Vietnam's strategic position, cost advantages, and growing electronics industry have made it a "rising star" in the global semiconductor market.

With support from the government, innovations in technology, and growing domestic and foreign investment, Vietnam will play a significant role in the growth of this critical industry.