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  • Writer's pictureVirtus Prosperity


Updated: Apr 11

Diverse Applications

Semiconductors, also known as semiconductor chips, are a crowning achievement of 20th century technology. These tiny microscopic particles play one of the most important roles in our daily lives. Semiconductors have spread their undeniable power from smartphones and personal computers to advanced medical devices.

Semiconductors, typically made of silicon, are materials that can conduct electricity when properly controlled. This property has made them the core of electronic devices. Semiconductor chips are made through a complex manufacturing process that enables the creation of small, powerful, and energy-efficient devices.

The Semiconductor Industry: A Large Economic Value

The semiconductor industry contributes significantly to the global economy. According to Statista, global semiconductor revenue reached $580.13 billion in 2022, with an average annual growth rate of 4.4%. However, 2023 is a year of challenges, with the market size estimated to decline to $556.57 billion.

The leading semiconductor providers are Samsung Electronics (10.9% market share), Intel (9.7% market share), SK Hynix (6% market share), Qualcomm (5.8%), Micron Technology (4.6%), Broadcom (4%), AMD (3.9%), Texas Instruments (3.1%), MediaTek (3%), and Apple (2.9%).

The Asia-Pacific region is characterized by a large number of consumers, rising disposable incomes, and growing demand for consumer electronics, as well as rapid urbanization and industrialization. From a production perspective, Taiwan's position in the world of semiconductor manufacturing is similar to Saudi Arabia's in OPEC. Taiwan Semiconductor Manufacturing Company (TSMC) holds 53% of the global chip foundry market share. Other manufacturers based in Taiwan claim an additional 10% of the market share.

The semiconductor market is expected to grow at double-digit rates in the coming years and could reach $1 trillion by 2030.

Vietnam's Preparations: Following the Giants

Deputy Minister of Information and Communications Nguyen Huy Dung revealed that Vietnam is currently drafting a Strategy for the Development of the Semiconductor Industry to 2030, with a Vision to 2035. The strategy will set out Vietnam's vision, commitment, goals, roadmap, tasks and solutions, as well as Vietnam's special incentives to promote the development of the electronics industry in general and the semiconductor industry in particular.

One of the key tasks is to accelerate Vietnam's participation in the regional semiconductor ecosystem and attract global semiconductor companies to invest, manufacture, research and develop in Vietnam.

The semiconductor industry in Vietnam is emerging as a destination for many semiconductor manufacturers, attracting the attention and presence of leading global giants from the United States and South Korea, such as Intel and Samsung with projects ranging from hundreds of millions to billions of dollars to build factories, expand production, and assemble.

On the other hand, domestic companies such as FPT announced the establishment of FPT Semiconductor in 2022 – a company that designs and manufactures semiconductor chips. To date, FPT Semiconductor's PMIC (Power Management IC) chips have completed the R&D stage and entered mass production. The company plans to supply 25 million chips to the global market in 2024 and 2025.

By the end of 2023, FPT plans to invest $100 million and employ nearly 1,000 employees. With continuous investment, FPT expects to create more than 3,000 jobs by 2028 and achieve $1 billion in revenue from the US market by 2030.

Though these are initial steps, they represent tremendously positive signals, paving the way for Vietnam to gradually secure its position in the semiconductor value chain, bringing numerous opportunities and value to the nation.

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