Vietnam increasingly establishes itself as significant player in chip testing, packaging sector
Date
11/13/2024 6:54:22 AM
(MENAFN) Vietnam is increasingly establishing itself as a significant player in the chip testing and packaging sector, as both international and local companies look to reduce their dependence on China amid escalating trade conflicts with the West.
The global market for back-end chip manufacturing, valued at around $95 billion, has traditionally been dominated by China and Taiwan. However, Vietnam is now emerging as a competitive force. Key global companies, including South Korea’s Hana Micron and U.S.-based Amcore, have expanded their operations to Vietnam to capitalize on this growing market. Xu Heong Ri, vice president of Hana Micron Vietnam, noted that the company is focusing on meeting the demands of industrial clients seeking to shift production away from China. To boost its packaging operations, Hana Micron plans to invest approximately 1.3 trillion won (about $930 million).
Amcore, meanwhile, announced a major $1.6 billion investment last year to build its largest and most advanced plant globally in Vietnam, covering 200,000 square meters. Some of the equipment for the new facility was sourced from China, according to sources familiar with the matter.
Intel has also played a prominent role in Vietnam’s semiconductor industry, actively participating in the first international semiconductor exhibition in the country and operating its largest global chip assembly facility there.
In response to growing U.S.-China tensions, Vietnamese companies are ramping up investment in the semiconductor sector. The U.S. government predicts that by 2032, Vietnam’s share of global chip production will increase from 1% to between 8% and 9%.
FBT, a Vietnamese tech company, plans to establish a testing plant near Hanoi, with initial operations set to begin next year. The plant will start with 10 testing devices, doubling that number by 2026 with an investment of up to $30 million. Additionally, Sofico Investment Group is seeking to collaborate with a foreign partner to develop a semiconductor plant in Danang.
Looking to the future, Vietnam is aiming to enter the front-end chip manufacturing sector, with state-owned Vettel planning to establish the country’s first integrated chip factory by 2030, aligning with the government’s goal of developing a fully integrated chip manufacturing ecosystem within the next decade.
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