Vietnam Semiconductor Market

Vietnam Semiconductor Market Size and Share:

The Vietnam semiconductor market size was valued at USD 7.03 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 16.64 Billion by 2033, exhibiting a CAGR of 9.30% from 2025-2033. The market is driven by the rapid adoption of advanced technologies such as Internet of Things (IoT), artificial intelligence (AI), and fifth generation (5G), the rising demand for consumer electronics fueled by rapid urbanization and a growing middle class, and significant government support through tax incentives and infrastructure development further impelling the Vietnam semiconductor market share.

Vietnam has emerged as a key regional hub for electronics production through massive foreign direct investment (FDI) by international technology industry leaders like Samsung, Intel, and Foxconn. During 2024, the nation's manufacturing sector has attracted some $26 billion worth of FDI, or 67% of the nation's total foreign capital, much of which was used in high-technology industries, such as semiconductors and electronics. The Vietnamese administration encourages semiconductor innovation actively by promoting incentives, fiscal incentives, and strategic collaborations. Further, mechanisms such as the National Strategy on Science, Technology, and Innovation 2030, together with upgrading infrastructure, also remain motivating for sector progress. As Vietnam moves toward diverting business sources away from China, proactive policies and an appealing investment environment solidify its presence in global supply chains of semiconductors.

Vietnam's rapidly advancing electronics industry serves as a key driver of semiconductor growth, particularly in the areas of smartphones, smart home appliances, and Internet of Things (IoT) devices. The country's expanding middle class and rising domestic consumption are further fueling the demand for advanced semiconductor technologies. Simultaneously, Vietnam's export-led production remains strong, with the country set to be a prominent participant in global value chains. The transition to fifth generation (5G), smart homes, and wearable technology further drive the need for high-end semiconductors. Moreover, Vietnam's status as an exporter of components for world-famous brands enhances consistency and growth in the use of semiconductors, pushing the country to become a promising market for local and foreign players.

Vietnam Semiconductor Market Trends:

Government support and strategic initiatives

The Vietnamese government is playing a supportive role in the development of the semiconductor market in Vietnam through different supportive and strategic measures. The government views the sector as helping to drive economic growth and contribute to technological development. Additionally, it is accordingly adopting supportive policies in favor of the sector, such as tax incentives, and subsidies, among others, and developing high-tech special economic zones. A substantial amount of investment has been deployed towards the development of the infrastructure for semiconductor manufacturing and research. As such, the government and private companies have been working in conjunction to create local capacity and draw foreign investment. In December 2024, Vietnam secured 174 foreign-invested projects in the semiconductor sector, totaling USD 11.6 Billion in registered capital. According to the Vietnam semiconductor market forecast, the government is promising the enhancement of education and training for a skilled workforce, which will be in the interest of the semiconductor sector in maintaining a constant supply of talent. Along with this, strategic cooperation with major global players in semiconductors is aiding in technology transfer and knowledge sharing in a way that has fast-tracked the industry's development.

Rising demand for consumer electronics and smart devices

The Vietnam semiconductor market demand is being propelled by the growing consumer electronics and smart devices. Additionally, the penetration of smartphones, tablets, laptops, and a host of other electronic devices into smart homes is further growing the need for increasingly complex semiconductor components that are integrated within these products for functionalities and performances. According to a market research report by IMARC Group, the Vietnam printed electronics market size is projected to exhibit a growth rate (CAGR) of 7.80% during 2024-2032. Thus, this is positively influencing the Vietnam semiconductor market share. In confluence with this, the rapid digitalization and the rise of the Internet of Things (IoT) demand high-performance semiconductor elements in the use of connectivity, data processing, and power management systems. Therefore, this is further propelling the Vietnam semiconductor market growth. In addition, the increasing consumer demand accounts for pressure on enterprises to innovate and update semiconductor solutions to enhance microchips and integrated circuit development. Furthermore, with the global transition to 5G technology, the demand will be even higher for more sophisticated semiconductors because 5G networks will require more advanced chips to deal with higher data speeds and better connectivity.

Expansion of the automotive and industrial sectors

The country's growing automotive and industrial sectors are majorly driving the Vietnam semiconductor market growth. The market for automotive in Vietnam is also getting technology-adaptive, depending on electronic systems for infotainment, navigation, driver assistance, and electric vehicle technologies. Moreover, the country's automotive sector continues to expand with domestic car production reaching nearly 388,500 units in 2024, a 27% increase compared to 2023. Additionally, the industrial sector is also adopting automation and smart manufacturing, thus encouraging the need for high-performance semiconductors. For example, in the area of robotics, factory automation, and process control systems, industrial applications rely heavily on advanced semiconductor technologies to make operations efficient and productive. The demand for specialty chips that will fuel more innovation in both these sectors will, in effect, be vital for the country at the head of its attention to industrial modernization and the fostering of Industry 4.0 in general. In 2023, the government of Vietnam announced that the US chip giant Nvidia wanted to establish a base in Vietnam to develop the market. Moreover, the greater demand continues to swing at the high end for specialty chips and drives innovation in both sectors, thus creating a positive Vietnam semiconductor market overview.

Vietnam Semiconductor Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Vietnam semiconductor market, along with forecast at the regional, and country levels from 2025-2033. The market has been categorized based on component, material type, and application.

Analysis by Component:

• Memory Devices
• Logic Devices
• Analog IC
• MCU
• Sensors
• Discrete Power Devices
• Others

Memory devices are devices that hold data and program instructions. They consist of DRAM, SRAM, and flash memory in computers, smartphones, and embedded applications. Demand in Vietnam for memory is fueled by consumer electronics, automotive, and industrial uses, with growing local assembly and test operations supporting global supply chains.

In line with this, the logic devices conduct binary operations to manipulate data within electronic systems. They consist of microprocessors, FPGAs, and ASICs employed in computing, networking, and mobile phones. Vietnam's robust electronics assembly industry and developing research and development (R&D) ecosystem fuel demand for these components across consumer and industrial uses.

In addition, analog integrated circuits process real-world signals such as sound, light, and temperature. They filter, amplify, and convert signals to be processed by digital circuits. Used extensively in sensors, power management, and communication systems, analog ICs play a critical role in Vietnam's growing smart devices and industrial automation industries.

Moreover, Microcontroller Units (MCU) are integrated chips that are small and have a processor, memory, and input/output peripherals. They are used in embedded systems to operate functions within appliances, vehicles, and IoT devices. Vietnam's increasing electronics production, particularly consumer and industrial automation products, strongly increases demand for microcontrollers.

Apart from this, the sensors measure physical input such as temperature, pressure, movement, and transform it into electrical signals. They are essential for smart devices, automotive safety, and industrial control systems. More modern sensors are being incorporated into both domestic and exported goods as a result of Vietnam's expanding manufacturing of wearable technology, smart appliances, and automobiles.

Besides this, the discrete power devices such as diodes and transistors control and switch electrical power. They are crucial in power supply units, motor drives, and energy-efficient systems. With Vietnam developing its manufacturing base and renewable power infrastructure, demand for power devices continues to increase, particularly in solar systems and electric vehicles.

Also, the other category comprises specialty or complementary semiconductor parts such as optoelectronics, RF devices, and custom ICs. They find applications in specialized domains like telecom, healthcare devices, and aerospace. Vietnam's diversification into electronics production drives demand in these segments for both export and local applications.

Analysis by Material Type:

• Silicon
• Germanium
• Gallium Arsenide
• Others

Silicon is the most common semiconductor material because it is abundant, stable, and there are well-established processing methods. It is the basis for most power devices, solar cells, and integrated circuits. Vietnam's semiconductor industry also depends largely on silicon-based chips for industrial applications and consumer electronics.

Concurrently, the germanium provides high electron mobility, which is suitable for high-speed and low-voltage devices. Although less prevalent than silicon, it's applied in optical devices, infrared sensors, and certain transistors. Its specialty applications are becoming increasingly important in Vietnam's defense, telecommunications, and specialty electronics industries.

Furthermore, the gallium arsenide (GaAs) delivers high-speed performance and superior efficiency in radio frequency (RF) and optoelectronic uses. It's crucial for smartphones, satellites, and LEDs. As 5G expansion and telecom infrastructure are promoted in Vietnam, GaAs-based components are increasingly included into domestic assembly and production processes.

Apart from this, the second category comprises materials such as silicon carbide (SiC) and gallium nitride (GaN), which provide better performance in high-temperature and high-power conditions. These new-generation semiconductors play a key role in electric cars and renewable energy systems, areas Vietnam is heavily investing in to upgrade its energy and tech sector.

Analysis by Application:

• IT and Telecommunication
• Defense and Military
• Industrial
• Consumer Electronics
• Automotive
• Others

According to Vietnam semiconductor market forecast, IT and Telecommunications spot semiconductors as critical in driving data centers, networking devices, and computers. With Vietnam's speeding-up of digitalization and 5G rollout, processor demand, memory chip, and RF component demand is quickly climbing. This expansion is fueled by Vietnam's strong electronics manufacturing base, which attracts foreign tech firms and infrastructural investment.

In addition to this, defense and military facilitate cutting-edge semiconductor technologies like radar, communications systems, drones, and surveillance. Vietnam's current military modernization and emphasis on cyber warfare are fueling demand for high-reliability chips. Although there is limited domestic production, collaborations and imports are contributing to the fulfillment of needs in high-reliability semiconductor solutions here.

Additionally, the industrial automation, robotics, and intelligent manufacturing depend on semiconductors for control, precision, and connectivity. Vietnam's transition towards Industry 4.0 is driving demand for sensors, microcontrollers, and power devices. These technologies are improving productivity and efficiency in sectors such as manufacturing, logistics, and energy, driving steady growth in industrial semiconductor applications.

Moreover, the consumer electronics like smartphones, televisions, and household appliances are key drivers of semiconductor use. Vietnam is a world-scale production center for top brands, so this industry is at the core of domestic semiconductor demand. Processing chips, memory chips, display control chips, and connectivity chips are essential for domestic consumption as well as export manufacturing.

Apart from this, the new-age automotive vehicles use semiconductors for engine control, infotainment, safety features, and electric drivetrain. With Vietnam investing in electric vehicles and automotive manufacturing, especially through VinFast, there is an increasing demand for automotive-grade chips such as sensors, power semiconductors, and embedded systems that enable intelligent and energy-efficient vehicles.

Furthermore, the other category consists of medical, aerospace, and agricultural uses. Semiconductors are applied in diagnostic equipment, satellite technology, and smart farm machinery. With Vietnam venturing into digital healthcare and precision agriculture, demand for specialized chips in these new markets is increasing, albeit on a smaller scale than in mainstream uses.

Analysis by Region:

• Northern Vietnam
• Central Vietnam
• Southern Vietnam

Northern Vietnam is a major center for semiconductor and electronics production, with large facilities for Samsung, Foxconn, and Intel. It is close to China, has well-developed infrastructure, and government-supported industrial parks, which make it a popular destination for FDI. The area also enjoys robust logistics, availability of workforce, and supply chain connectivity.

Furthermore, Central Vietnam is positioning itself as an emerging industrial base with a heightened interest in high-tech manufacturing. Da Nang and other cities are being projected as technology centers of the future with support from the government. While it trails behind the south and north, it presents reduced costs and strategic value for investment and growth involving semiconductors.

Apart from this, the Southern Vietnam, especially Ho Chi Minh City and surrounding provinces, is a vibrant hub for tech startups, R&D, and electronics assembly. The area has robust logistics infrastructure, quality workforce, and proven high-tech parks such as Saigon Hi-Tech Park, which has big players such as Intel and other semiconductor back-end companies.

Competitive Landscape:

The competitive dynamics of Vietnam semiconductor market companies are changing fast, fueled by rising foreign investment, government encouragement, and rising domestic demand. The market is now dominated by international players working through manufacturing, assembly, and testing facilities. Local capabilities are still limited but are slowly enhancing, particularly in chip design and packaging. Competition is also heating up as additional players try to diversify supply chains from the usual hubs, making Vietnam a strategic option. Moreover, the development of industrial zones, tax breaks, and skilled manpower is drawing additional entrants. Yet, difficulties such as poor upstream infrastructure and dependence on imports for raw materials hinder full ecosystem development, requiring collaboration and technology transfer for long-term competitiveness.

The report provides a comprehensive analysis of the competitive landscape in the Vietnam semiconductor market with detailed profiles of all major companies.

Latest News and Developments:

• April 2025: Marvell Group committed to supporting Vietnam's goal of training 50,000 semiconductor engineers by 2030 by working closely with the National Innovation Centre and local universities to enhance training programs and expand research and development activities.
• April 2025: Da Nang launched major projects in data centers, semiconductors, and AI, including a 1,000-rack facility with a USD 32 million first-phase investment. The city signed MoUs, hosted training with global tech partners, and aimed to become a global semiconductor and AI hub by 2030 with expanded infrastructure and education.
• March 2025: Betamek Bhd announced ongoing talks with firms in Vietnam and Thailand for potential automotive sector collaborations. Vietnam was highlighted as a key market.
• February 2025: Amkor Technology Vietnam announced plans to triple its semiconductor factory output in Bac Ninh from 1.2 billion to 3.6 billion items annually. The expansion, set for completion by October 2025, aimed to create 7,200 jobs.

Vietnam Semiconductor Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Vietnam Semiconductor market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Vietnam semiconductor market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Vietnam Semiconductor industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.