Vietnam is accelerating the development of its semiconductor industry, unveiling a comprehensive strategy to push annual semiconductor revenues beyond $100 billion by 2050. This strategy was officially signed and issued by Vietnam’s Prime Minister Pham Minh Chinh and outlines both short-term goals for 2030 and a long-term vision leading up to 2050.

Strategic Framework: Decoding the C = SET+1 Formula

The core design of the strategy is built around a simple formula: C = SET+1. Here, “C” stands for Chip, representing the core of the semiconductor industry. “S” signifies Specialized chips, “E” refers to Electronics, and “T” denotes Talent, with the “+1” symbolizing Vietnam’s potential to become a safe and reliable destination within the global semiconductor supply chain. Through this formula, Vietnam has clearly identified its unique position in the global semiconductor industry, aiming to strengthen its competitiveness across multiple stages, including research, design, manufacturing, and testing, to become an indispensable link in the supply chain.

Three-Phase Roadmap: 2030 to 2050

Vietnam’s semiconductor industry is set to evolve over three distinct phases, with clearly defined objectives for each phase:

Phase 1 (2024-2030)

In this initial phase, Vietnam will leverage its geographical advantages and its talent pool to strategically attract foreign direct investment (FDI), positioning itself as one of the global centers for semiconductor talent. The focus will be on building foundational capabilities across the semiconductor value chain, including research, design, production, packaging, and testing. The targets for this phase include:

• Establishing at least 100 design firms, one small semiconductor chip manufacturing plant, and 10 packaging and testing facilities.
• Developing specialized semiconductor products for various industries.
• Achieving an annual semiconductor industry revenue exceeding $25 billion, with value-added contributions reaching 10-15%.
• Expanding the electronics industry’s annual revenue to over $225 billion, with value-added contributions of 10-15%.
• Growing the semiconductor talent pool to over 50,000 engineers and university graduates, with the structure and scale of the workforce optimized to meet development needs.

Phase 2 (2030-2040)

In the second phase, Vietnam aims to become one of the world’s semiconductor and electronics hubs. By combining self-reliance with foreign investment, the country will promote the development of its semiconductor and electronics industries. Key milestones for this phase include:

• Establishing at least 200 design firms, two semiconductor chip manufacturing plants, and 15 packaging and testing facilities.
• Gradually achieving self-sufficiency in specialized semiconductor product design and manufacturing.
• Increasing annual semiconductor industry revenue to over $50 billion, with value-added contributions reaching 15-20%.
• Boosting the electronics industry’s annual revenue to over $485 billion, with value-added contributions of 15-20%.
• Expanding the semiconductor talent pool to over 100,000 engineers and university graduates, ensuring workforce structure and scale align with industry demand.

Phase 3 (2040-2050)

In the final phase, Vietnam aims to solidify its position as one of the world’s leading semiconductor and electronics nations, mastering research and development in these fields. The country will:

• Foster at least 300 design firms, three semiconductor chip manufacturing plants, and 20 packaging and testing facilities.
• Achieve mastery of semiconductor R&D.
• Attain annual semiconductor industry revenue exceeding $100 billion, with value-added contributions reaching 20-25%.
• Grow the electronics industry’s annual revenue to over $1.045 trillion, with value-added contributions of 20-25%.
• Ensure the structure and scale of the semiconductor talent pool adequately meet the industry’s needs.
• Establish a robust semiconductor ecosystem that allows for autonomous production and leadership in certain stages of the production chain.

Key Tasks and Measures

To realize these ambitious goals, the strategy outlines five key tasks and measures, including:

• Developing specialized semiconductor chips.
• Promoting the growth of the electronics industry.
• Cultivating and attracting talent in the semiconductor sector.
• Encouraging investment in the semiconductor industry.
• Implementing additional supportive policies and measures.

Conclusion: The Future of Vietnam’s Semiconductor Industry

Vietnam’s strategy for developing its semiconductor industry showcases the government’s foresight and ambition to emerge as a significant player in the global supply chain. With its well-structured, phased approach and strong policy support, Vietnam is poised not only to accelerate its economic growth but also to secure a key position in the global semiconductor and electronics industries.

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