Foreign investors have shown increasing interest in the semiconductor industry of Vietnam with the expansion of investment in many projects.

The country is viewed as a potential new semiconductor production hub of the world in 2024-2030 period.

In the latest deal, the South Korean semiconductor firm Signetics will invest $100 million in building and operating a semiconductor plant in northern Vinh Phuc province. 

Covering 5ha in Ba Thien I Industrial Park, the plant will produce flip-chip, MCM, BGA, and FBGA, which are essential components of memory chips, graphics processing units (GPU) and televisions. These products will be supplied to leading groups of South Korea like Samsung and SK.

The deal proves the attraction of Vietnam to foreign firms in the field of semiconductor.

Mr. Song Young Hee, Director General of Signetics JSC – a subsidiary of Youngpoong Group of South Korea which specializes in semiconductor industry, said one of the reason Signetics chose Vinh Phuc as its investment destination is the province’s investment environment and policies.

Accordingly, Vietnam is chosen as the next investment destination of the company, after the US and the Netherlands, he said.

Sharing the same view, Mr. Amit Laroya, Senior Vice President for Asia – Transportation and Electronics – of the US’s 3M Corporation, said as the fastest-growing electronics market in Southeast Asia, Vietnam has gained special attention from enterprises of the global semiconductor ecosystem.

The 3M has actively expanded its operation in fast-growing markets with demand for advanced solutions in many fields such as consumer electronics, semiconductor, data center and industrial automation, he said.

The 3M has recently opened a science, technology and engineering center in Hanoi.

The “heat” of the semiconductor industry of Vietnam has kept growing with the participation of many giant tech firms this year.

US-headquartered Amkor Technology Inc., which makes semiconductors, in June this year decided to increase its investment in Vietnam by $1.07 billion, 11 years earlier than its initial plan. The company inaugurated its $520-million factory in northern Bac Ninh province in October 2023.

Many US major semiconductor firms have committed to invest in Vietnam, including Intel, Marvell and GlobalFoundries.