Vietnam’s Blueprint to Win in the Global Semiconductor Supply Chain
The global semiconductor value chain, a multifaceted process woven across nations and businesses with diverse models, is undergoing a transformative shift. This realignment, sparked by disruptions, presents Vietnam with a golden opportunity to ascend, evolve, and carve a more substantial role in this intricate landscape.
Since its foray into the semiconductor sector in 1979, Vietnam has traversed four decades, yet it contributes a mere 4% to the global value chain. The key impediments to its growth include limited investment in Research and Development (R&D) and a shortage of qualified talent pools. However, within these challenges emerges a distinctive prospect.
Vietnam's semiconductor industry is poised for exponential growth, propelled by future-ready trends. Notably, the automotive sector stands out as the fastest-growing end-use application, driven, the anticipated shift in packaging technologies, with 2.xD packaging expected to constitute 65% of revenue by 2025, and the revolutionary impact of open-source chip architecture led by RISC-V further accentuate Vietnam's potential. Additionally, the Artificial Intelligence (AI) semiconductor market, forecasted to reach a total addressable market of $86 billion by 2026, adds another dimension to this promising landscape.
The government's strong backing for the semiconductor industry signals a commitment to transformative change. As Vietnam stands on the brink of unprecedented growth, private stakeholders have a unique opportunity to contribute to semiconductor transformation and capitalize on the growing market. This juncture necessitates strategic investment and collaboration to address challenges and build a more sustainable semiconductor value chain. Stakeholders can shape Vietnam's semiconductor success by aligning with trends, leveraging government support, and positioning for substantial growth, making a lasting impact on the industry and contributing to the global value chain.
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