Short: The Vietnamese government has approved the construction of the country’s first wafer fabrication plant. It is an ambitious project with a total investment of VND 12.8 trillion (~ $ 500 million), and construction is expected to be completed before 2030. But it does not end there. The country aims to become one of the major semiconductor countries of the world between 2040 and 2050.
Trendforce reports that this feature will focus on the production of special chips for high -tech applications such as AI, Defense Tech, and more. It also has some serious financial support, promising to cover up to 30% of the cost with the local government, as well as covering tax encouragement. A special Steering Committee under the leadership of the Prime Minister of Vietnam will also see everything.
This push should not come as a total surprise. Over the years, Vietnam has actively interacted with the major chip companies of America, South Korea, Taiwan and other major semiconductor nations. Closed-door talks with prominent players such as Globalfoundries and Taiwan’s Powerchip Semiconductor, although no deal has been made public yet.
However, the master plan is far ahead of this project. Last year, the Prime Minister signed the semiconductor strategy of Vietnam through 2050. It is an ambitious, which is divided into three stages.
Step 1 Asks to install at least 100 chip design companies, a manufacturing plant, and 10 packaging/testing features by 2030. Step 2 The expansion of that footprint will expand 200 design firms in 2030–2040 time, two firms and 15 packaging/testing sites. Finally, Phase 3 aims to increase these numbers 300 design houses, three manufacturing plants, 20 packaging/testing features, and to achieve a revenue target of more than $ 100 billion annually by 2050.
It will not be easy to achieve these goals. Insiders in the industry have stated that the manufacture of an advanced chip fab may cost $ 50 billion or more – Vietnam’s $ 500 million budget looks like pocket changes. The head of the US Semiconductor Industry Association also recommended to focus on Vietnam on low-length fruits such as chip packaging, before attempting advanced manufacturing.
However, Vietnam intends on a quick approach and allegedly aims to take advantage of foreign investment and partnership with domestic technical companies such as Vital. This will use them to rapidly increase its semiconductor abilities throughout the supply chain. The country already hosts around 175 foreign semiconductor projects, collectively about $ 12 billion, even they are mainly focused on packaging and testing segments.
