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Billions of dollars poured into Vietnamese semiconductor projects
Date: 10/17/2023 8:26:09 AM
Vietnam’s semiconductor sector is emerging as a destination for many semiconductor manufacturers when attracting the attention and presence of the world’s leading "giants" from the US and Korea such as Intel, Samsung... with Projects ranging from hundreds of millions to billions of dollars investing in factory construction, expanding production and assembly...

 

Electronic circuit assembly and testing factory of Intel Products Vietnam Co., Ltd
Electronic circuit assembly and testing factory of Intel Products Vietnam Co., Ltd

According to experts, in the context of businesses around the world accelerating in the race to digital transformation and developing device ecosystems, the production of integrated semiconductor microchips has become the backbone of electronic systems. and the growing technology industry. The growing adoption of IoT technology and smart home technology is driving the growth of the semiconductor market in Vietnam, and semiconductor component factories are being promoted to address the shortage. Global.

To make a chip, there are three basic stages: design, manufacturing and packaging. Vietnam currently plays an important role in the global semiconductor industry, which mainly focuses on assembly, testing and packaging.

2 OF THE 3 "BIG MAN" CHIP IN THE WORLD ARE PRESENT AND INVESTING IN VIETNAM

In particular, when talking about investing in the field of semiconductors, it is impossible not to mention Intel - one of the three leading semiconductor manufacturers in the world, which more than 10 years ago began developing a factory in Vietnam. with a scale of 1 billion USD. Vietnam is currently the location of this technology company’s largest assembly and testing factory in Ho Chi Minh City Hi-Tech Park. It is estimated that this factory accounts for more than 50% of Intel’s total output globally.

In 2021, Intel has increased the investment capital of this project to nearly 1.5 billion USD and is planning to invest more to expand the factory in Vietnam. Vietnam has become an important part of Intel’s global production network.

Along with Intel, Samsung also announced plans to produce semiconductor components in Vietnam. Mass production of semiconductor chip grid products at Samsung Electro-Mechanics Vietnam Factory in Thai Nguyen is expected to be carried out at the end of 2023, after trial production is completed.

In addition, the market also witnessed the presence of Hana Micron Vina, Amkor Technology, and many other companies, actively investing in these projects.

In the North, on September 16, Hana Micron Vina (Korea) inaugurated a semiconductor factory project in Van Trung Industrial Park (Bac Giang). This is the first semiconductor manufacturing project in the North. The factory in Vietnam will be the number one production facility in the Group’s global business operations.

Factory line  Production plant of Hana Micron Vina company (Korea) in Bac Giang.
Production factory line of Hana Micron Vina company (Korea) in Bac Giang.

Hana Micron Vina is an enterprise that manufactures and processes integrated circuit boards used for mobile phones and other smart electronic products, with a total registered investment capital of nearly 600 million USD.

Mr. Choi Chang Ho, Chairman of Hana Micron Vina, said that by 2025, the company plans to increase total investment to over 1 billion USD. Hana Micron Vina will develop a new semiconductor industry ecosystem in Vietnam, contributing to diversifying the types of innovative technology and techniques that Vietnam is pursuing.

Another billion-dollar project (1.6 billion USD) in the field of semiconductors is being implemented by Amkor Technology Vietnam Company (Korea) in Bac Ninh and is expected to be completed next September and put into trial production. tested immediately afterwards. This is Amkor’s largest and most modern factory globally.

VIETNAM CONTINUES TO BE A DESTINATION FOR MANY OF THE WORLD’S LEADING COMPANIES IN SEMICONDUCTOR DEVELOPMENT

Korean chip manufacturing giant Hanmi Semiconductor announced at the end of May 2023 that it would put Hanmi Vietnam Branch in Bac Ninh into operation. Hanmi Semiconductor is one of the leading designers, developers and manufacturers in the semiconductor device industry.

Also at the end of May 2023, Infineon Technologies AG (Germany), a company specializing in semiconductor solutions for power systems and IoT, announced the expansion of its scale of operations in Vietnam and the establishment of a development team. electronic chip working in Hanoi. The team will focus on testing and customizing digital, analog and integrated circuits that support automated driving, monitoring and battery balancing applications.

According to Mr. Hartmut Hiller, Executive Vice President of Design and Support Services (DES), Infineon Technologies AG, the new development center in Hanoi will help the company meet the growing demand related to Functional testing and custom circuit design for Infineon system-on-chip (SoC) solutions.

Illustration
Illustration

Meanwhile, Synopsys (headquartered in California) deployed a semiconductor design and incubation center in collaboration with Ho Chi Minh City High-Tech Park. Also in Ho Chi Minh City, Marvell - one of the world’s leading corporations in semiconductor circuit design - established a world-class semiconductor design center.

In addition, Victory Giant Technology, a Chinese corporation specializing in manufacturing electronic components and semiconductors, decided to choose to build a factory with a total investment of 400 million USD in Bac Ninh.

With the excitement of projects, some industry experts believe that Vietnam is emerging as a production center for many world semiconductor enterprises and may continue to become more vibrant.

A technology expert acknowledged that the fact that Korean IC design companies followed Samsung into Vietnam like some recent companies shows that the scale of Vietnam’s electronics industry is large enough to lead to the development of Vietnam’s electronics industry. development of the semiconductor chip industry, first in the design and packaging stages...

The semiconductor industry in Vietnam is opening up opportunities for development and attracting investment. Vietnam is considered to have a fast-growing semiconductor ecosystem with the potential to enhance its position in the global supply chain. Promoting a supportive business ecosystem will help Vietnam attract large businesses in the semiconductor chip industry.

In the recent joint statement on the Vietnam-US Comprehensive Strategic Partnership, the two sides recognized Vietnam’s great potential to become a key country in the semiconductor industry, while "supporting the development rapid development of the semiconductor ecosystem in Vietnam, actively coordinating to enhance Vietnam’s position in the semiconductor supply chain.

Vietnam and the United States announced the launch of human resource development initiatives in the semiconductor sector, in which the US Government will provide an initial seeding grant worth 2 million USD.

This is considered a new step for Vietnam on the path to penetrating an industry worth hundreds of billions of dollars.

Statistics show that Vietnam has accounted for more than 10% of US chip imports worldwide for 7 consecutive months. The Ministry of Information and Communications said that in terms of sales, Vietnam ranked 3rd in Asia, after Malaysia and Taiwan in exporting semiconductor chips to the US.

Besides foreign projects, in Vietnam, a number of technology units and enterprises have researched, designed, and manufactured chips such as FPT Semiconductor, CMC, Viettel... This will be a path for Vietnam to deeply participate. into the global semiconductor chip industry. For example, FPT has announced its successful design and production of commercial chips to supply to many markets and its goal of becoming the largest chip design company in Southeast Asia.

According to Gartner’s report, global chip manufacturing industry revenue in 2022 increased by about 1.2% compared to 2021, reaching 601.7 billion USD. It is forecasted that the global semiconductor market will be about 1,400 billion USD in size by 2029.

Joining the global semiconductor market, Vietnam will have billion-dollar opportunities. It is forecast that by 2024, Vietnam’s semiconductor industry will exceed 6.16 billion USD in value.

(Source:vneconomy)
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