Vietnam to build six semiconductor fabs — country aims to become a major player in the semiconductor industry by 2050

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Vietnam to build six semiconductor fabs — country aims to become a major player in the semiconductor industry by 2050

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The only major semiconductor asset in Vietnam is Intel’s assembly and test facility. However, the company plans to establish itself as a major global player in the semiconductor industry by 2050. Prime Minister Pham Minh’s strategy, which

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reports, lays out specific goals, detailed timelines, and actionable steps to drive the sector’s growth and ensure long-term sustainability.

Vietnam’s strategy that was adopted by PM’s Decision No. 1018/QD-TTg is quite comprehensive and is built around five primary objectives: designing specialized chips, fostering growth in the electronics sector (which will use chips developed and built in Vietnam and elsewhere), creating a skilled workforce, attracting investments, and implementing other relevant initiatives to boost the industry. The general goals by 2050 include three semiconductor production facilities, 20 packaging and testing facilities, and establishing hundreds of local chip designers.

Phase 1: Set the stage for future growth with one fab and 50,000 engineers

During Phase 1 (2024-2030), the focus is on leveraging Vietnam’s strengths to draw foreign direct investment and establish core semiconductor research, design, manufacturing, and testing competencies. By the end of this phase, the country aims to set up at least 100 design companies, one small semiconductor fab, and ten packaging and testing facilities.

The company targets over $25 billion in semiconductor revenue and a workforce of more than 50,000 engineers and university graduates. Also, Vietnam expects its electronics industry to surpass $225 billion in revenue by 2030, which probably includes building additional electronics assembly facilities in addition to today’s existing ones.

Phase 2: Two more fabs and 100,000 engineers

With 50,000 semiconductor engineers and university graduates, Vietnam’s strategy for advancing its semiconductor and electronics sectors during the Phase 2 (2030 – 2040) plan involves combining self-reliance with foreign direct investment. The country aims to solidify its position as a semiconductor hub by establishing at least 200 chip design firms, building two fabs, and 15 facilities for packaging and testing.

The development of human resources is a crucial element of this phase. Vietnam intends to cultivate a highly skilled semiconductor workforce, growing from 50,000 to over 100,000 qualified professionals by 2040, ensuring that talent is aligned with the sector’s evolving needs.

The plan projects semiconductor industry revenue to surpass $50 billion annually, with a 15-20% value-added impact. The electronics industry’s yearly revenue is expected to reach over $485 billion, contributing 15-20% in added value.

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Phase 3: Three more fabs and 300 design firms

During Phase 3 (2040 – 2050), Vietnam intends to establish at least 300 design firms, build three semiconductor manufacturing plants, and 20 packaging and testing facilities. With 600 chip design companies, Vietnam wants to become a leading semiconductor research and development country.

Vietnam’s revenue targets for Phase 3 are set at more than $100 billion while increasing self-sufficiency. Alongside these goals, the strategy envisions the Vietnamese electronics industry exceeding an annual revenue of $1 trillion by 2050. This phase is expected to deliver a significant value-added contribution to the country’s economy, with targets ranging from 10% to 25% across different plan phases.

Already developing

Although Vietnam is not typically associated with chip manufacturing, Intel stands out with its significant test and assembly plant near *** Chi Minh City, which is critical to Intel’s global operations. Additionally, numerous electronics assembly companies operate in Vietnam. Companies like Samsung Electronics, Intel, ASE, Amkor, Texas Instruments, NXP, ON Semiconductor, Qualcomm, Renesas Electronics, Marvell, Infineon, and Synopsys have already made significant investments in the country, which proves their confidence in Vietnam’s growing potential. Even Nvidia expressed confidence in Vietnam last year.

However, several challenges, including energy supply issues, low wages, and gaps in technological infrastructure, stand in the way of Vietnam’s ambitious goals. Addressing these barriers will be crucial for realizing the country’s vision for the semiconductor sector.

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