Vietnam semiconductor industry potential (Part 1)

Yen Chou, DIGITIMES Research, Taipei 0


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Due to its proximity to China, Vietnam has become a new semiconductor manufacturing "friendshoring" location for the US.

DIGITIMES Research finds that Vietnam's semiconductor industry shows a development trend with manufacturing having a stronger presence in the north and design in the south.

The infrastructures, government policies, and the supply of water, electricity and human resources are key issues for makers setting up businesses in the country.

As the US-China technology war rages on, the US government is seeking to decentralize semiconductor manufacturing to avoid the risk of over-concentration. As a result, a "China+1" investment strategy has taken shape for the technology industry. In response to the US including Vietnam as a friendly offshore outsourcing partner, the Vietnamese government upgraded its relationship with the US to a comprehensive strategic partnership in September 2023 to create a favorable environment for collaboration in the semiconductor industry.

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