The current global race for AI supremacy, combined with the supply chain hurdles that come as a result of strained US-China relations is propelling Vietnam as a promising semiconductor production hub. Semiconductors are crucial components of electronic devices that drive productivity and innovation in many industries.
Following the USA’s commitment to support the sector, the Vietnamese government is keen on increasing investment in developing the semiconductor sector, and investors have been encouraged to expand their operations with many preferential policies in place.
South Korean semiconductor giant Amkor recently announced the opening of a new $1.6 billion packaging factory in the northern industrial province of Bac Ninh, close to the capital city Hanoi. The factory will be among the biggest operated by Amkor globally and will cover around 23 hectares in the Yen Phong II-C Industrial Park.
In September, Hana Micron, also from South Korea, opened a $600 million packaging factory in Bac Giang province.
Vietnam’s stable political system, low labor costs, skilled human resources and strategic geographic proximity to high-tech supply chains across Asia have been drawing investments from industry giants such as Samsung and Intel, among others.
Experts suggest Vietnam can elevate its chip-export game with rigorous adjustments in policies and less reliance on foreign direct investment.
