Vietnam's semiconductor push draws $2.5 billion in major chipmaker investments

Several chipmakers are setting up and boosting their chip testing and packaging plants in Vietnam, adding a new twist to the global semiconductor supply chain. South Korean packaging company Hana Micron has pledged quite an amount—about 1.3 trillion won ($930.49 million) by 2026—to ramp up its operations in Vietnam, mostly around packaging legacy memory chips.

Then there's Amkor Technology, pouring $1.6 billion into a massive 2.16 million-square-foot facility, which is set to be the company's most cutting-edge packaging plant. Word on the street is that some gear from Amkor's places in China will be moved to this new spot in Vietnam.

Intel, too, is showing some serious commitment, with its biggest back-end production site based in Vietnam, underlining the country's rising influence in chip manufacturing. They even highlighted this at Vietnam's first-ever international semiconductor expo near Hanoi.

Local companies aren't sitting out, either. Vietnamese tech firm FPT is building a 10,764-square-foot testing plant near Hanoi, planning to invest around $30 million. They'll start with ten testing machines, aiming to triple that capacity by 2026.

Vietnam's goals in the semiconductor world aren't just about back-end work. The state-owned Viettel is on track to launch the country's first chip foundry, with eyes set on moving into front-end production by 2030. Investment group Sovico is also scouting international partners to set up an ATP (Assembly, Testing, and Packaging) plant in Danang.

This push from Vietnam to grow its semiconductor industry aligns with the Biden administration's aim to diversify the global chip supply chain. Analysts predict that Vietnam's stake in global chip assembly, testing, and packaging will rise from one percent in 2022 to around nine percent by 2032.