In recent years, the pattern of the global semiconductor industry has changed, and countries have increased investment to compete for the commanding heights of the industry. On March 5, 2025, Vietnam's National Assembly approved a major plan to provide financial support for the country's first fab, with the goal of achieving production by the end of 2030. This move not only highlights Vietnam's ambitions in the semiconductor field, but also arouses widespread attention from the global semiconductor industry to reshape the industrial landscape.
1. Vietnam's National Assembly approved the first fab funding program
The fab construction plan approved by the Vietnamese government this time is not to be underestimated. According to the Vietnamese government news network, the government will provide 12.8 trillion VND (about 500 million US dollars) in financial support for the construction of the first wafer fab. In addition, the Vietnamese government has also introduced a series of preferential policies, including government financial support of 30% of the total investment amount and no more than VND 10 trillion for enterprises that put into operation on time; Fabs receive an additional 10% (20% total) income tax rebate for technology reinvestment; and fab land use rights can be allocated directly without going through the auction process.
Figure: Vietnam's first fab is scheduled to start production in 2030
2. Technology accumulation and talent reserve
Vietnam is not without foundation in the field of semiconductors. In recent years, Vietnam has made certain achievements in the packaging and testing link of the semiconductor industry chain. International giants such as Intel and Amkor Technology have continuously increased their investment in Vietnam, accumulating rich technical experience and talent reserves for Vietnam. In 2023, Vietnam's semiconductor exports will reach US$7.53 billion, of which exports to the United States account for more than half, ranking as the third largest chip supplier to the United States.
3. Strong promotion and policy support from the government
The Vietnamese government has shown a strong determination to promote the development of the semiconductor industry. Vietnamese Prime Minister Pham Minh Chinh personally supervised the selection of private partners, and local tech giants Viettel and FPT have made their intention to participate. The Vietnamese government also plans to build two more wafer fabs in 2030~2040 and three additional wafer fabs in 2040~2050 to achieve sustainable development of the semiconductor industry.
4. Challenges and risks
However, Vietnam also faces a number of challenges in the field of impacting wafer manufacturing. The capital required to build a state-of-the-art fab is huge, with a cutting-edge fab costing more than US$50 billion, compared to Vietnam's initial investment of US$500 million. In addition, Vietnam is facing a shortage of high-end talents, insufficient technology accumulation, and fierce global competition. Giants such as TSMC and Samsung dominate semiconductor manufacturing, and it will not be easy for Vietnam to get a piece of the global market.
5. Global Competitive Landscape and Future Prospects
In the context of increasingly fierce competition in the global semiconductor industry, Vietnam's move is undoubtedly hoping to occupy a place in the industrial landscape. With the deepening of the adjustment of the global industrial chain, Vietnam is expected to gradually master chip manufacturing technology through the construction of its first wafer fab, laying the foundation for achieving technological independence by 2050. However, in order to stand out in the global semiconductor market, Vietnam needs to continue to make efforts in technological innovation, talent training and industrial chain improvement. The implementation of Vietnam's first wafer fab plan will affect the pattern of the global semiconductor industry to a certain extent, but whether it can truly shake the existing industrial pattern remains to be tested by time.
