Vietnam announces his first wafers factory and has plans to be one of the largest in the world by 2050

The Vietnam Government revealed this week ambitious plans for the country’s future in the semiconductor market, and it all starts with the establishment of its first chip wafers factory. Vietnamese authorities will invest the equivalent of US $ 500 million in subsidies for the construction of the facilities, expected to start operating by 2030.

The first Vietnam chip wafers factory will be focused on specialized and high end components, to be used in AI and military technologies, for example. In addition to the initial investment, the government intends to subsidize 30% of costs and offer tax incentives to companies.

Many countries have announced investment in the semiconductor segment in recent times. However, the Vietnam government draws attention because it has announced a 3 -phase plan, with the aim of making the nation one of the most competitive in the world in the semiconductor segment by 2040 to 2050.

The first phase of the plan, in addition to establishing the country’s first wafers factory, incorporates creating at least 100 chip design companies and 10 more component testing and packing facilities. Phase 2 will involve the expansion of these numbers and the creation of a second factory. Finally, phase 3 aims to reach 300 design companies, three wafers factories, 20 pack facilities and reach an annual income from $ 100 billion by 2050.

Will Vietnam be able to invest what is necessary for your plans?

The $ 500 million investment draws attention, but is a very small number compared to expert estimates. Industry insiders predict that establishing a modern factory involves spending at least $ 50 billion – 100 times the amount announced by the Vietnam government.

According to Techspot, to the US, the country’s current commercial partner, has already indicated other opportunities that they should start by investing first in simpler facilities.

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Vietnam, however, bets on its ability to attract external investments. Currently, the nation is already responsible for the testing and packaging phase of 175 different foreign chip projects, which are worth more than $ 12 billion. We can also speculate that the country sees current friction between US and China as a window of opportunity, as some companies leave their neighboring neighbor.