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The Role of Vietnam in International Chip Competition

The Role of Vietnam in International Chip Competition

The Role of Vietnam in International Chip Competition

World-leading chip companies such as Intel and Samsung are heavily involved in Vietnam as global semiconductor competition intensifies.

follow up Global TimesAlthough the wave of production line transfers from China to Vietnam is still attracting a lot of attention, Vietnam was still the focus of the semiconductor industry as Samsung announced its production plan. Semiconductor devices from July 2023.

With its role and influence in the global market, Samsung’s recent actions will boost the strong growth of Vietnam’s semiconductor industry in the future.

Samsung factory in Thai Nguyen, Vietnam Photo: Reuters

Check out the Samsung factory in Tay Nguyen, Vietnam: Reuters

From an expert perspective, Shinmu Research Analyst Gu Wenjun said that the world is very competitive in the semiconductor industry. Southeast Asian countries benefit from attracting many international companies for investment. “This makes Vietnam a new base for the semiconductor industry with industrial parks for chip testing and packaging,” said Mr. Gu Wenjun. Global Times.

Global Times Experts also mentioned that Vietnam is becoming an important part of the global semiconductor industry supply chain and has the potential to compete with China.

According to a report by research firm Technavio, the semiconductor market in Vietnam is set to grow from 2021 to 2025. It will grow by 1.65 billion.” Rising consumer demand is a direct reason for the high growth of Vietnam’s semiconductor fabs, which have attracted foreign investment capital from many overseas companies in recent years. Vietnam is known as an emerging market in the semiconductor sector in Asia. ‘ Technavi said.

In addition to Samsung, Intel’s largest assembly and test plant is also located in Vietnam. Intel Products Vietnam (IPV) has invested US$1.5 billion, employs more than 2,800 people and is the largest American high-tech company in Vietnam. In 2021, IPV shipped more than 3 billion products to Intel customers worldwide.

In late May, Intel recognized IPV for its innovations in substrate processing and test facilities that have helped Intel successfully bring millions of chips to market and contributed to Intel’s success. It is important to help the company overcome the global chip crisis.

Kim Huat Ooi, Vice President and General Manager of Intel Products Vietnam, said, “This initiative will enable Intel to assemble the chip 80% faster and address the shortage of substrate suppliers. The new system at Intel’s Vietnamese factory will help the company add millions of chips each year, raising hopes of boosting Intel’s profits to more than 2 billion.

In addition to the two giants Samsung and Intel, many of the world’s major semiconductor companies have built factories in Vietnam, such as USI Electronics, ASA Semiconductor from Taiwan or Renesa Electronics from Japan.

According to Gu Wenjun, Vietnam’s advantage is a large labor market and cheap country. “The political and social environment is stable, trade and investment policies are becoming more liberal, and the labor force is becoming more liberal,” said Steve Long, Intel’s Asia Pacific and Japan managing director. Young and talented activities are the reason why Vietnam is so attractive.” Mr. Long believes that Vietnam is quite capable of creating the necessary infrastructure and policies to support advanced manufacturing activities.

However, the current situation of the Vietnamese semiconductor industry also reflects the overall situation in Southeast Asia in this area. Manufacturing companies in the region simply assemble finished products and export low-value components in the supply chain. Even Malaysia, the country with the most developed semiconductor industry in the region, is struggling with the transition from a low-cost chip foundry to high-end chip design and manufacturing.

Despite its huge potential, experts have pointed to challenges for Vietnam’s semiconductor industry. follow up TechnaviOne of the biggest obstacles today is the lack of qualified workers. As an example of the lack of a domestic chip industry, Nguyen An Thi, chief executive officer of Ho Chi Minh City’s High-Tech Park, said the city is one of the leading semiconductor centers in the country. , but only about 1,000 IC engineers, 2,000-3,000 embedded systems engineers. “The current 1,000 IC engineers are insufficient to meet the needs of the industry and tens of thousands more are needed to ensure the industry has a highly skilled workforce,” he said. T

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