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BUSINESS REPORT

Center of appeal

Vietnam is making significant strides forward in global semiconductor
supply chains as a range of leading chip manufacturers establish
a presence in the country.

| By PHUONG NHI

n January 13, US Ambassador to President and General Manager of the and approach, together with its focus on
Vietnam, H.E. Marc E. Knapper, Marvell Cloud Optics Business Group, infrastructure investment in semiconductors
O held a working session with leaders expressed a keen interest in the development and AI and the necessary human resources.
from the Da Nang City People’s Committee of the semiconductor industry in Vietnam Vietnam’s semiconductor market is wit-
regarding the development of cooperative in general and acknowledged the potential nessing strong growth, with figures from
activities between the US and the central for the industry’s development in Da Nang Statista revealing that revenue in the market
city in the immediate future. Ambassador in particular. One of the leading companies is projected to reach $19.89 billion this
Knapper said the US is willing to help in semiconductor design and data infra- year and grow at a compound annual
Vietnam, and especially Da Nang, in devel- structure provision, ranking in the top 25 growth rate (CAGR) of 9.62 per cent in
oping a semiconductor industry and its globally, Marvell has been in Vietnam since the 2024-2027 period, resulting in a market
further integration into the global supply 2013. Marvell Vietnam has two offices in volume of $26.20 billion by 2027. Within
chain. He noted that since Vietnam and Ho Chi Minh City, with around 300 employ- this, integrated circuits will dominate, with
the US established a comprehensive strategic ees, and plans to expand its headcount to a projected market volume of $16.26 billion
partnership for peace, cooperation, and 500 in the near future. The company is this year. A report from Technavio, mean-
sustainable development, the US Govern- interested in the city’s policies to promptly while, noted that Vietnam’s semiconductor
ment has implemented action programs deploy and promote investment. market is projected to reach $7.01 billion
to support Vietnam in developing a semi- At a meeting with Prime Minister Pham by 2028 and grow at a CAGR of 6.69 per
conductor industry, and many US businesses Minh Chinh in Hanoi last December, Mr. cent from 2023 to 2028. Growth in the
are optimistic about the prospects for the Jensen Huang, President and CEO of US market will depend on several factors,
sector in the country and have expressed chip giant Nvidia, said the company hopes including sustainable growth in the global
an expectation that it will be able to maxi- to establish a base in Vietnam, as it views semiconductor industry, increasing invest-
mize the opportunities arising from the the country as its home. The base will ments in the industry, and the growing
upgrade in bilateral relations. attract talent from around the world to use of the Internet of Things (IoT).
contribute to the development of the local Meanwhile, following a period research-
GREATER ATTENTION semiconductor ecosystem and AI and to ing the potential of Vietnam’s semiconductor
A delegation from US semiconductor promote startups, thus boosting the country’s market, on October 11, 2023, Amkor Tech-
giant Marvell then worked with the People’s digitalization. Nvidia has already invested nology officially opened a semiconductor
Committee on January 15 to explore the some $250 million in Vietnam, and regards assembly and testing factory in northern
local environment and cooperative oppor- the country as a key market. Mr. Huang Bac Ninh province, with capital of $1.6 bil-
tunities for semiconductor investment in also recognized Vietnam’s potential and lion, which is set to enter into mass pro-
the city. Dr. Loi Nguyen, Executive Vice opportunities and its clear strategy, vision, duction this year. The chip factory will

26 | VIETNAM ECONOMIC TIMES | FEBRUARY 2024 en.vneconomy.vn