The Semiconductor Industry and its Role in Driving the Global Economy
The semiconductor manufacturing industry is a new and important sector that is driving the world’s economy. According to information from the Economic Affairs Bureau – Ministry of Foreign Affairs, the United States is the country that invented and leads in semiconductor technology in history and still dominates the global market (nearly 50% of the global market). The US recognizes that semiconductors play a foundational role in driving the global economy in the digital transformation era, artificial intelligence, and 5G technology.
The semiconductor industry has witnessed strong revenue growth in recent years. According to data from the Semiconductor Industry Association (SIA), the revenue of the semiconductor industry increased from $139 billion in 2001 to $573.5 billion in 2022, equivalent to a 313% increase. At the same time, semiconductor sales also increased by 290%.
Forecasts show that the revenue of the semiconductor market will continue to rise to $613.1 billion in 2024. The estimated annual growth rate is 6.3%, which will bring the total market value to $736.4 billion in 2027. It is projected that the revenue of this industry will reach $1 trillion in 2030.
According to McKinsey, 70% of the future growth of the semiconductor industry will mainly come from three main industries: automotive, computing, data storage, and wireless communication. Among them, the automotive industry will account for nearly 20% of the market expansion in the coming years.
The Semiconductor Industry in Vietnam: How It Looks
Vietnam’s strategic location, along with the shift in manufacturing and the trend of global supply chain diversification, has provided Vietnam with the opportunity to become a key player in the global supply chain restructuring process.
Vietnam is currently ranked 9th globally in the field of electronics exports. In 2023, computers, phones, and electronic components are the largest export items, reaching $110.53 billion, accounting for over 31% of the country’s total export turnover. It is evident that the potential for the development of the semiconductor industry in Vietnam is immense.
At the Vietnam Business Summit with the theme “Connecting Vietnam with the Southeast Asian Semiconductor Ecosystem,” held on September 29, 2023, Minister of Planning and Investment Nguyen Chi Dung stated that Vietnam has the capacity to develop the semiconductor industry.
Meanwhile, to attract foreign investors, Vietnam has established the National Innovation Center (NIC) and three high-tech zones in Ho Chi Minh City, Hoa Lac (Hanoi), and Da Nang, equipped with the best technical infrastructure, human resources, and investment policy mechanisms to welcome corporations and businesses to invest.
“We encourage existing manufacturing corporations to expand their operations in Vietnam. Corporations that do not have operations in Vietnam should explore the opportunities to invest in Vietnam, with many incentives and favorable investment policies in high-tech zones in Ho Chi Minh City, Hanoi, and Da Nang,” emphasized Minister Nguyen Chi Dung.
The Current Status of the Semiconductor Workforce in Vietnam
Along with the development of the semiconductor industry, according to Synopsys, by 2030, the world will need 900,000 new semiconductor professionals. Vietnam has an abundant labor force in the field of engineering and technology suitable for the semiconductor industry. Vietnam is also attracting an increasing number of major global corporations in the semiconductor industry.
In the next five years, Vietnam will need about 50,000 semiconductor technology engineers, equivalent to 10,000 engineers per year nationwide. However, high-quality human resources for the semiconductor industry remain a challenge for Vietnam. Currently, Vietnam’s human resources can only meet about 20% of the demand.
Therefore, the Vietnamese government is particularly interested in promoting investment and developing the semiconductor industry in Vietnam. A plan has been established to develop the workforce aimed at forming a team of 50,000 engineers for this industry by 2030.
In Vietnam, semiconductor workforce training is not a new field of study. There are many renowned universities that specialize in this field, such as Hanoi National University, Hanoi University of Science and Technology, Ho Chi Minh City National University, Posts and Telecommunications Institute of Technology… Large enterprises with resources and willingness to cooperate in developing the semiconductor industry, such as Viettel, VNPT, FPT, and CMC.
In addition, collaboration with leading technology companies and corporations is considered a key factor in providing high-quality human resources for the semiconductor industry. Collaboration with Samsung Corporation is the most prominent example.
A few days ago, the University of Technology – Vietnam National University, and Samsung Electronics Korea signed a cooperation document to implement the VNU-Samsung Tech Track (V-STT) program with the goal of training high-quality master’s degree-level personnel in the field of semiconductors and integrated circuits. Students participating in the VNU-Samsung Technology Track program will be extensively trained in semiconductor industry fields such as integrated circuit design, semiconductor materials, semiconductor manufacturing, and analysis.
After graduation, students who receive V-STT scholarships sponsored by Samsung will have the opportunity to work directly at Samsung in chip/semiconductor fields.
Another example is NIC cooperating with Synopsys (USA) to propose that they provide free chip training software licenses to universities. NIC has also strengthened connections with leading semiconductor companies worldwide to provide internship opportunities for students at their top technology corporations and laboratories… This is also one of the solutions to enhance the semiconductor workforce in Vietnam.
With the efforts of Vietnam, to put it in the words of Mr. Nguyen Thien Nghia, Deputy Director in charge of the Information Technology and Electronics Industry Department, Ministry of Information and Communications of Vietnam, Vietnam “is ready for the breakthrough expansion of the semiconductor industry”.
Illustrative image created by AI
