According to market research firm Technavio, Vietnam's semiconductor industry is projected to grow at nearly 19% CAGR, about US$6.16 billion, between 2020 to 2024. The semiconductor sector is deemed as a stimulator for many industries and as one of the high value-added industries from a national perspective.

Vietnam's semiconductor industry dispersed over only a few suppliers and could get more dispersed over the projected period of time. Vietnam's main semiconductor suppliers include Broadcom, Hitachi, Intel, NXP, Qualcomm, Samsung Electronics, SK Hynix, STMicroelectronics, Texas Instrument, and Toshiba.

As IoT devices become more and more common, it offers an opportunity for semiconductors, according to VIR. Suppliers need to quickly find their place in some fast-growing industries.

The Vietnamese government initiated the first IC development program in 2009 and set up an IC design research and education center, Saigon high-tech park lab, and two IC R&D centers with a total of US$3.2 billion. The program provided microchip design training to electric engineers and incubated over 30 local technology companies. A portion of locally-made chips manufactured between 2012 to 2017 has been successfully commercialized.

This January, Da Nang Hi-tech Park has authorized Silicon Valley-based supplier Hayward Quartz Technology to build semiconductor fabrication plants worth a total of US$110 million.

In the same month, Intel increased investment by US$475 million in Intel Products Vietnam. The ramp-up brings Intel's total investment in Vietnam's facilities to US$1.5billion since 2006.