GLOBAL SEMICONDUCTOR INDUSTRY GROWTH TRENDS
The global semiconductor industry is experiencing strong growth following a slight downturn in 2023. That year, total global revenue reached approximately $529 billion. Driven by renewed demand, 2024 is projected to hit a record $630.5 billion, an increase of 19% year-on-year. In Q2 2025, growth continues strongly, with global sales reaching $179.7 billion, up 20% compared to the same period last year. PwC forecasts that by 2030, total industry revenue will exceed $1 trillion, driven by new technologies.
Surge in chip demand due to emerging applications New technology trends are fueling chip demand. Artificial intelligence (AI) applications are driving the need for high-performance data-processing chips, while electric vehicles (EVs) and IoT devices require high-performance and connected chips. For example, data centers and large language AI models require GPUs and high-speed memory. Consequently, chip design companies (like Nvidia, AMD) and manufacturers (TSMC, Samsung) are continuously expanding production capacity to meet growing demand.
Regions and economic areas with strong growth
East Asia (Taiwan, South Korea, China, Japan): This region accounts for about 75% of global semiconductor manufacturing capacity. Taiwan, led by TSMC, dominates the foundry market, controlling roughly 67% of the global market. South Korea hosts Samsung and SK Hynix, industry leaders (Samsung achieved $66.5 billion in revenue in 2024). China is the largest chip consumer, accounting for ~42% of global chip expenditure, and is accelerating domestic technology development to reduce reliance due to US technology restrictions.
United States: The US leads in chip design and semiconductor software, accounting for ~72% of global design revenue. Companies such as Intel, Nvidia, and Qualcomm are headquartered in the US. The CHIPS Act (2022) provides nearly $52 billion to develop domestic chip manufacturing while tightening technology exports to China. Projections suggest that this policy will attract about 28% of total global CAPEX into the US.
Europe: Although Europe (particularly Germany, the Netherlands, France, and the UK) holds a smaller market share, it focuses on specialized segments such as automotive chips, sensors, and industrial devices. For example, ASML (Netherlands) exclusively produces extreme ultraviolet (EUV) lithography machines; Infineon (Germany) and STMicroelectronics (France/Switzerland) specialize in automotive and power chips. The European Chips Act (September 2023) aims to increase domestic production capacity to 20% by 2030, up from 10.5% today.
Other regions: Japan, South Korea, and Taiwan are strengthening chip security cooperation through the “Chip 4 Alliance”. Many companies are relocating part of assembly, testing, and packaging (ATP) lines to Southeast Asia to take advantage of lower costs. Malaysia and Vietnam have announced national semiconductor strategies and are collaborating with international corporations, such as Arm’s project to train 10,000 chip engineers in Malaysia.
Technology-driven growth The semiconductor industry is mainly driven by new technology waves. Besides AI, EVs and IoT play critical roles: electric vehicles require numerous control and sensor chips, while IoT demands billions of moderate-performance chips. The rise of 5G and cloud computing also increases demand for networking and processing chips. Rapid adoption of these technologies shortens design and production cycles, boosting R&D investment and global chip manufacturing expansion.
Changes in the global supply chain
The global chip supply chain is shifting toward multilateralism and sustainability. Leading countries are racing to expand domestic production to reduce dependency. The US, via the CHIPS Act (2022), has allocated over $50 billion to domestic chip manufacturing, along with incentives for research and workforce training. Europe is committing significant resources through the European Chips Act (2023) and the Digital Decade program to double production capacity by 2030. Trade and technology controls (tariffs, export restrictions) between the US and China are also reshaping supplier networks.
A notable trend is geographic diversification: many semiconductor companies are relocating assembly and packaging operations to Southeast Asia (Malaysia, Vietnam, Thailand) to reduce costs and mitigate geopolitical risks. For instance, Malaysia launched a national chip strategy and large-scale engineer training projects; Vietnam, Thailand, and Singapore are implementing similar initiatives. Overall, the global supply chain is increasingly being restructured into a “multi-polar” model, with emerging production regions playing a more active role.
Vietnam’s role in the semiconductor supply chain
Vietnam is striving to become an important node in the regional semiconductor supply chain. The government approved the National Semiconductor Development Strategy (Decision 1018/QĐ-TTg, 21 September 2024) with a vision toward 2030 and 2050. The initial phase (by 2030) aims to increase revenue beyond $25 billion and achieve 10–15% annual value-added growth. Vietnam’s strengths include lower labor and electricity costs compared to Malaysia, Thailand, and Singapore, along with tax incentives and import duty exemptions for semiconductor companies. Its strategic location near East Asia (which accounts for ~70% of global production capacity) and comprehensive FTAs also favor chip and electronics exports.
Vietnam is also focusing on developing high-quality human resources for the semiconductor sector. The country targets training around 50,000 engineers and technicians by 2030. Universities and high-tech centers are expanding programs in electronics and IC design, while international cooperation is encouraged. In September 2023, Vietnam and the US signed an agreement on semiconductor supply chain collaboration and workforce development, opening opportunities for specialized training programs. According to Nikkei Asia, Vietnam may need 3–5 years to fully address infrastructure and workforce challenges to remain competitive with other countries in the global chip value chain.
Investment and business activities
Vietnam has attracted numerous large FDI projects in assembly, packaging, and testing (ATP). Intel has operated a chip assembly and QA factory in Ho Chi Minh City for over 10 years; recently, Amkor Technology inaugurated a packaging plant in Bac Ninh; Samsung plans to produce semiconductor components (flip-chip BGA technology) in Vietnam this year. New investors, including Hana Micron (South Korea) and Amkor (US), have invested billions of USD to expand packaging capacity. Recently, Coherent (US) opened a $127 million plant in Dong Nai for optical components and high-power semiconductor materials for AI and telecom.
Simultaneously, domestic enterprises are increasingly participating in the chip value chain. FPT Semiconductor (part of FPT Group) designs and develops chips for IoT, automotive, and consumer electronics, collaborating with local ATP providers for packaging. Viettel is expanding R&D and testing of chips for defense and telecom applications, while CMC Telecom is providing IC design services. As a result, Vietnam’s chip exports have grown rapidly: according to Bloomberg, exports to the US increased from $312.7 million (Feb 2022) to $562.5 million (Feb 2023), accounting for 11.6% of total US chip imports (after Malaysia and Taiwan).
In conclusion, Vietnam is actively promoting investment, tax incentives, and human resource development to capitalize on the global supply chain shift. While infrastructure and core technology challenges remain, the speed of development and the commitment from both public and private sectors indicate that Vietnam is steadily establishing an important role in the global semiconductor industry.
