Vietnam is recognized as a country with abundant opportunities and the necessary prerequisites for fostering the growth of a semiconductor ecosystem. This makes it an attractive destination for investment and offers the potential for it to elevate its position and profile within the global semiconductor supply chain. However, alongside the promise are challenges in supply chains and a shortage of chip engineers and other skilled workers to support development.

The semiconductor sector has a pivotal role to play for many industries, and draws interest worldwide. Projections suggest it could generate revenue in excess of $620 billion beyond 2024 and $1 trillion by 2030.

It is also considered a cornerstone in the technological competition between global powers in the 21st century. In Vietnam, forecasts indicate that a semiconductor industry could achieve a scale of $20-30 billion by 2030.

10,000 engineers in need each year

The semiconductor chip market has posted consistent and rapid growth over the past two decades, boasting an annual compound growth rate (CAGR) of 14 per cent. Major economies like the US, South Korea, Japan, China, and EU members have all unveiled initiatives to bolster the semiconductor manufacturing. The industry currently employs over 2 million workers directly, with 1 million more to be employed by 2030 in segments such as design, manufacturing, assembly, packaging, and testing.

Addressing a recent seminar on the development of a semiconductor workforce, Associate Professor Truong Viet Anh, Head of the Science and Technology Department at the Hanoi University of Science and Technology, said Vietnam currently has around 5,000 semiconductor engineers, primarily specializing in design and testing. With expected growth in annual demand of 10-15 per cent, Vietnam will need to have 50,000 semiconductor engineers by 2030, with 10,000 to be trained each year.

Industry experts have said that Vietnam stands at a significant juncture in advancing its semiconductor sector, benefiting from the presence of numerous global conglomerates and local startups. However, its involvement is limited to certain early and final-stage activities, and it lacks the necessary manufacturing facilities.

In terms of design, Vietnam boasts six companies, including Viettel’s VHT, FPT Semiconductor, InfraSen, VnChip, Wavelet, and Hyphen Deux, while approximately 40 foreign players from Japan, the US, Taiwan (China), and South Korea contribute around 5,600 engineers in the design phase.

In testing and packaging, Vietnam is progressively becoming an attractive destination for major corporations looking to relocate their operations. Others have been here for some time. The Intel plant has been operational since 2009, with close to 3,000 engineers, alongside the Amkor factory in northern Bac Ninh province and Hana Micron Vina Company in neighboring Bac Giang province, employing an estimated 4,000 people.

According to a National Innovation Center report, if the projected demand for semiconductor engineers reaches 50,000 by 2030, approximately 204,000 jobs will be generated directly and indirectly.

Known for its attractiveness in semiconductor investments, Bac Giang has three manufacturers in its industrial parks, according to Mr. Nguyen Xuan Ngoc, Deputy Head of the Industrial Park Management Board.

There are currently 8,074 workers employed in semiconductor enterprises around the province. These enterprises anticipate hiring an additional 1,866 workers this year, with a further 6,300 to be recruited between 2025 and 2030.

Lack of senior engineers

Associate Professor Pham Tran Vu, Vice Rector of the Ho Chi Minh City University of Technology, said there are approximately 40 companies nationwide engaged in chip-related activities, employing around 5,600 engineers. While Vietnamese engineers excel in specific aspects of chip design, there is a dearth of senior engineers capable of overseeing the complete chip design process.

He noted that Vietnamese engineers predominantly focus on the physical design phase, where they adhere to the requirements set by principal designers. “This phase demands a substantial workforce but yields minimal added value,” he explained.

The semiconductor supply chain comprises three primary stages: design, manufacturing and packaging, and testing, all of which necessitate skilled personnel. Vietnam primarily focuses on the design, packaging, and testing phases, of which design requires a significant number of workers with university degrees.

Acknowledging the prevailing opportunities and advantages, the government has tasked the Ministry of Planning and Investment with leading coordination between relevant agencies to formulate a Human Resources Development Plan for the semiconductor industry to 2030 with a perspective extending to 2045. The plan aims to train the 50,000 engineers needed in Vietnam by 2030 to support the semiconductor industry across all segments of the value chain. This includes approximately 15,000 chip design engineers and 35,000 engineers in manufacturing, packaging, testing, and related fields.

Viettel’s projection is also that Vietnam will require a minimum of 50,000 new engineers by 2030, representing a ten-fold increase from the current number, to secure a significant position in the global semiconductor landscape. In order for this to happen, universities will also need to expand their capacity by ten-fold.

Experts believe that educational institutions could realistically meet this demand for 50,000 newly-trained graduate personnel over the next 5-10 years. However, post-graduate training in the field remains limited. Substantial support of postgraduate education is therefore crucial to accommodate semiconductor companies investing in Vietnam.

Mr. Trinh Khac Hue, CEO of Qorvo Vietnam, spoke of the recruitment challenges faced by semiconductor firms. His company has forged strong partnerships with leading universities in Vietnam educating the necessary talent pool to ensure it has the personnel it needs.

Combing semiconductor chips and electronics

Technological prowess is very much a prerequisite in building a semiconductor industry. According to Mr. Nguyen Anh Thi, Chairman of the Ho Chi Minh City High-Tech Park Management Board, “building a robust semiconductor sector hinges on our internal technological capabilities. It is imperative to cultivate a skilled workforce capable of navigating the design process and commercializing our products.”

He underscored the urgency of bolstering efforts to attract FDI, particularly from strategic investors pivotal to the global supply chain. To do so, he advocated a concerted focus on policy mechanisms that facilitate scaling up and enhancing the caliber of semiconductor talent through tailored training initiatives aimed at refining design proficiencies to meet industry demands. Furthermore, fostering the emergence of homegrown enterprises capable of crafting “Made in Vietnam” electronic goods and semiconductor chips tailored to domestic market niches is essential. This strategic move would then progressively transition towards export-oriented endeavors.

Policies aimed at supporting and fostering the establishment of the semiconductor industry structure should be integrated into inter-sectoral relations, regional collaboration, the optimization of comparative advantages, and the enhancement of local competitiveness. Adherence to international standards is also paramount when participating in the global semiconductor supply chain.

Mr. Nguyen Thanh Yen, CEO of the Coasia Semi Vietnam Co., suggested that semiconductor chip output serve as inputs for the domestic electronics industry. Regardless, Vietnam’s electronics sector continues to remain underdeveloped.

According to analysts, the country must promptly develop a strategy and roadmap for semiconductor industry growth and establish a comprehensive semiconductor industrial ecosystem covering design, manufacturing, assembly, and testing.