While not a massive project with a “billion-dollar” scale, the recent investment by South Korean investor Signetics in a factory producing critical components for memory chip, GPU, and TV manufacturing in the Ba Thien 1 Industrial Park, Vinh Phuc province, underscores Vietnam’s appeal to foreign companies in the chip and semiconductor industry.
With an investment of 100 million USD and a sprawling 5-hectare site, Signetics’ semiconductor-related product manufacturing facility will become a key supplier to electronic giants like Samsung and SK upon its official launch in October 2025.
COMPANIES ACCELERATE BUSINESS PLANS
Mr. Song Young Hee, CEO of Signetics JSC (a subsidiary of South Korea’s Youngpoong Group, engaged in the semiconductor industry), cited the investment environment and policies as key factors aligning with their production scale and upcoming business strategies, making Vietnam, specifically Vinh Phuc, their chosen investment destination.
“As such, Vietnam is the next location the company wishes to collaborate and expand its investments after its production branches in the US and the Netherlands,” shared Mr. Song Young Hee.
Though not a direct chip manufacturer, Mr. Amit Laroya, Senior Vice President for Asia in the Transportation and Electronics sector at 3M, acknowledged Vietnam’s allure for businesses within the global semiconductor ecosystem.
“As the fastest-growing electronics market in Southeast Asia, Vietnam is attracting the attention of numerous foreign companies in the semiconductor ecosystem. Hence, 3M is actively expanding its presence in high-growth markets, addressing the demand for advanced solutions across consumer electronics, semiconductors, data centers, and industrial automation,” said Mr. Amit Laroya, outlining 3M’s strategy in Vietnam.
The inauguration of the new Science, Technology, and Engineering Center in Hanoi in mid-August 2024 underscores 3M’s commitment to maintaining its position as a world leader in innovation as Vietnam garners increasing attention from semiconductor and ecosystem enterprises.
“Numerous American companies are gradually investing in Vietnam. As a participant in semiconductor manufacturing processes such as polishing and finishing, 3M will expedite preparatory activities to optimally serve the production chain,” stated Mr. Amit, hinting at a fraction of 3M’s plans after over three decades in Vietnam.
SEMICONDUCTOR INDUSTRY “HEATS UP”
Vietnam’s semiconductor industry is heating up with the entry of numerous prominent players. The most notable example is Amkor’s 2024 billion-dollar project in the semiconductor sector. This industry leader increased its investment by 1.07 billion USD in June 2024, eleven years ahead of schedule, following its factory inauguration in October 2023.
Additionally, major American semiconductor companies, including Intel, Amkor, Marvell, and GlobalFoundries, have pledged significant investments in Vietnam’s semiconductor industry. These moves are poised to shape the country’s semiconductor ecosystem in the coming years.
According to Mr. Choi Joo Ho, General Director of the Samsung Vietnam Complex, given their crucial role in the global supply chain, numerous high-tech companies worldwide are vying for investment opportunities in Vietnam.
In reality, the investment wave in this sector gained momentum last year when US, European, Japanese, and South Korean investors arrived in Vietnam, expressing keen interest in semiconductors. While global foreign investment tended to stagnate in the last few years, the semiconductor industry alone attracted 155 billion USD in foreign investment in 2021 and 2022, the highest level in two decades. Consequently, Vietnam is poised to become the world’s new semiconductor manufacturing hub in 2024–2030.
In a discussion with the Ministry of Planning and Investment—the agency tasked with formulating the Proposal for Developing Semiconductor Human Resources by 2030, with a vision toward 2050—Mr. Richard Lawton Thurston, former Vice President of TSMC, Taiwan, assessed that Vietnam has tremendous potential to develop its semiconductor and AI industries.
“AI development requires various technologies, including sensors, memory, data collection, and processing. Therefore, Vietnam should select a specific stage to focus on and devise a corresponding strategy,” advised Mr. Thurston.
EMPHASIZING HIGH-QUALITY HUMAN RESOURCE DEVELOPMENT
Regardless of the chosen stage in the production process, Mr. Thurston emphasized that Vietnam’s immediate priority is to swiftly devise a plan and roadmap for developing the semiconductor industry, with an initial focus on training high-quality human resources to meet the requirements of investing companies.
“The primary reason for businesses shifting their investments to Vietnam is the country’s competitive advantage in its young workforce with a solid foundation in computer science. The current challenge is to enhance the quality of this human resource pool by imparting specialized skills that meet the specific demands of each industry, particularly cutting-edge sectors like semiconductors and electronics,” explained Mr. Amit.
To establish a robust human resource foundation in Vietnam, it is crucial for manufacturing companies to closely collaborate with training centers and universities to cultivate and develop specialized talent for specific industries, such as semiconductors and electronics. Additionally, strengthening cooperation between Vietnamese universities and manufacturing facilities with R&D capabilities can foster the development of high-quality human resources.
“This collaboration not only provides skilled labor but also offers internship opportunities that equip students with practical experience, making them industry-ready and laying the groundwork for the establishment and operation of factories,” the 3M representative stated.
In September 2023, the US and Vietnam signed a Memorandum of Understanding on semiconductor supply chain cooperation, workforce development, and ecosystem development to bolster bilateral science and technology relations and build a more resilient semiconductor supply chain.
To bolster the industry’s human resources, Vietnam and the US will launch extensive workforce development programs, including practical teaching laboratories and training courses focused on semiconductor assembly, testing, and packaging.
Simultaneously, Vietnam is formulating a comprehensive development strategy and human resource plan, supported by relevant regulations, policies, and mechanisms, to attract leading global semiconductor manufacturers and designers. Once these policies and mechanisms are implemented, Vietnam’s human resources will become a magnet for foreign investment…
https://postenp.phaha.vn/chi-tiet-toa-soan/tap-chi-kinh-te-viet-nam
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