1. Strategic Importance of the Semiconductor Industry
In the era of big data and artificial intelligence (AI), semiconductors are no longer just one sector. They have become the backbone of all electronic devices, from smartphones and data centers to electric vehicles and IoT products. Demand for AI-specific processing (GenAI), the growth of data centers, and the digitization of cars have pushed the semiconductor industry into a new growth cycle. After a recent adjustment, the market is now expanding again. Industry research forecasts record-high revenues in 2025. Therefore, semiconductors are now considered a globally strategic industry.
2. Global Market Developments: Recovery and Expansion
The past two years have shown a strong rebound after the supply-demand correction. In 2024, the industry recorded a clear recovery. Forecasts for 2025 expect another breakout year, with revenues projected to exceed USD 700 billion. This growth is not only from consumer electronics but also from AI, high-performance computing (HPC), and data center components. Moreover, major manufacturers and equipment vendors are adjusting strategies to meet demand for advanced nodes, packaging, and AI-focused technologies.
3. Technical and Market Drivers
3.1. AI Boom and Specialized Chips
GenAI and large-scale models are pushing computational needs higher than ever. This increases demand for GPUs, NPUs, IPUs, and other accelerators. As a result, both chip design and advanced packaging are being optimized to improve performance and signal transmission.
3.2. Supply Chain Shifts (Friend-shoring & Diversification)
Geopolitical risks are forcing multinational firms to diversify. Many are moving assembly and testing to ASEAN countries, including Vietnam. Consequently, this investment wave expands production capacity and creates opportunities for a strong supporting ecosystem.
3.3. Scaling Limits and New Technologies
Moore’s Law is slowing down. Therefore, the industry is focusing on chiplets, heterogeneous integration, and advanced packaging such as 2.5D and 3D stacking. In addition, new materials, EUV improvements, and advanced interconnects are being explored. These innovations raise demand for packaging and testing, requiring closer R&D–manufacturing collaboration.
4. Vietnam’s Semiconductor Landscape
4.1. Market Size and Forecast
Independent research shows Vietnam’s semiconductor market reached USD 7.03 billion in 2024. It is projected to grow at ~9.3% CAGR, reaching USD 16.64 billion by 2033. This growth reflects strong FDI inflows, more packaging facilities, and higher exports.
4.2. FDI Inflows and Projects
Vietnam has attracted large investments in assembly, testing, and packaging (ATP). Reuters and others reported projects from Amkor, Hana Micron, and major global players. Analysts expect Vietnam’s share of the global ATP market to rise sharply in the coming decade. Hundreds of registered projects confirm the trend.
4.3. Strengths and Limitations
Strengths:
- Young labor force
- Strong electronics industry background
- Geographical advantage in Asia’s supply chain
- Pro-FDI policies and high-tech parks
Limitations:
- Lack of IC design and wafer fab capabilities
- Limited research infrastructure and supply chain depth
- Shortage of skilled engineers
- Few SMEs supporting advanced factory needs
5. Strategic Opportunities
- Leverage ATP Strengths: Focus on automation and advanced packaging for AI and HPC.
- Invest in Chip Design: Build design and IP capabilities to reduce FDI dependence.
- Develop R&D–Education Ecosystem: Strengthen collaboration between companies, universities, and institutes.
- Attract Supply Chains: Encourage domestic suppliers of materials, testing tools, and services.
- Form Global Partnerships: Work with partners in Korea, Japan, China, the US, and the EU for training, R&D, and joint ventures.
6. Conclusion – CT Semiconductor’s View
The global semiconductor industry is entering a new boom, driven by AI and data demand. Vietnam is benefiting from global supply chain restructuring and is positioned as a regional packaging and testing hub. However, moving from “manufacturing base” to “value creator” requires long-term strategy. This includes investment in R&D, specialized talent training, and building design capabilities.
As a local ATP and OSAT provider, CT Semiconductor is ready to be a trusted partner. With expertise in Assembly, Testing, and Packaging, the company supports the global industry with reliable and innovative solutions.
1 – WORLD SEMICONDUCTOR TRADE STATISTICS – WSTS (2025)
2 – IMARC Report (2024)
