According to the Semiconductor Industry Association (SIA) of the US, there are three basic steps to making a semiconductor chip: design, manufacturing, and finally testing and packaging.
The design stage accounts for about 53% of the value of a chip, the manufacturing stage about 24%, and the remaining 6% for testing and packaging. Vietnam currently focuses mainly on the lowest value-added stage in the chain, which is testing and packaging. To develop the semiconductor industry, Vietnam has two options: one is to upgrade to the design and manufacturing stages that are still open; the other is to continue to expand in the assembly, packaging and testing stages.
No matter which option is chosen, meeting the requirements of the semiconductor industry is not easy. In the context of the global minimum tax taking effect from 2024, foreign businesses are no longer interested in tax breaks but in overall preferential and support policies, including infrastructure and human resources. Southeast Asia is currently considered an important hub on the global semiconductor map.
Experts say that meeting infrastructure and human resources for the semiconductor industry is very important. Vietnam, along with countries such as Malaysia, Singapore, and Thailand, is home to many large microchips packaging plants, supplying 30-40% of the global semiconductor microchip packaging. The Vietnamese semiconductor market is forecast to reach 8.1 billion USD by 2028, with a growth rate of 12.6% during the period 2023-2028, according to a report by IMARC Group.
The report said that semiconductor materials are widely used in various industries across Vietnam and the market size currently reached 3.8 billion USD in 2022. As demand for electronic devices continues to grow globally, manufacturing facilities need to increase production volumes to meet consumer demand. This increased production requires a corresponding increase in semiconductor materials to manufacture electronic components. Furthermore, to maintain a competitive edge, electronics manufacturers are constantly adopting the latest technologies, which often require new materials with advanced properties.
In addition, Vietnamese semiconductor companies are incorporating 3D packaging to maintain market competitiveness. The adoption of these technologies, such as through-silicon via (TSV) and die stacking configurations, has improved the performance and energy efficiency of semiconductor devices. These improvements allow for the integration of multiple chips into a single package, reducing form factor and increasing functionality. Furthermore, technological advances have led to the development of advanced semiconductor materials.
These materials offer superior electrical and thermal properties, making them ideal for high-performance applications in power electronics, wireless communications, and the automotive sector. Vietnamese semiconductor manufacturers are taking advantage of these materials to create more efficient and reliable devices. As Vietnam’s electronics manufacturing industry focuses on exports, semiconductor material suppliers can penetrate the global market through partnerships with local manufacturers. This provides an opportunity for suppliers to meet international demand while benefiting from Vietnam’s competitive manufacturing landscape.
