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VIETNAM’S SEMICONDUCTOR INDUSTRY ON THE RISE: KANEMATSU JOINS THE MOVEMENT

09-01-2025

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“The semiconductor industry is crucial for modern technology and innovation. With rising demand for advanced microchips, the global market is driving progress. Vietnam aims to become a key player in this fast-growing, vital sector.”

Market Growth: The growth of Vietnam’s semiconductor industry is growing due to increasing global demand for electronic devices and technological advancements. Major international companies like Samsung, Qualcomm, and Amkor are present in the country, which has attracted around 40 multinational firms. As the third-largest US semiconductor partner in Asia, Vietnam provided over 10% of United States’ imported chips. The market is expected to reach USD18.2 billion in 2024, with a CAGR of 11.5%, forecasted to reach USD31.4 billion by 2029.

Competitive Advantages: Vietnam has 16 free trade agreements, more than its neighbors. The government offers tax breaks for high-tech projects, making it cost-effective with skilled workers. The government plans to train 50,000 engineers by 2030 and supports infrastructure like the National Innovation Center in Hanoi and development of Saigon Hi-Tech Park.

Strategic Investments and Global Position: Vietnam has attracted significant foreign investment from the US, Korea, Japan, Taiwan, and the Netherlands. Major investments include:

Pegatron: Up to USD 500 million between 2026 and 2027.
Besi: VND 115 billion (USD 4.9 million) in Ho Chi Minh City High-Tech Park, starting early 2025.
Intel: Largest global assembly and testing facility in Saigon Hi-Tech Park.
Hana Micron: USD 1 billion in a second factory in Bac Giang province.
Nvidia: USD 250 million in partnerships with Viettel, FPT, Vin-group, and VNG.
Domestic companies like Viettel and FPT are also crucial in developing the sector.

Strategic Partnerships:

US-Vietnam Collaboration: The US supports with initiatives like the CHIPS and Science Act.
Amkor Technology: Increased capital in Bac Ninh factory by over USD 1.07 billion in 2024.

Vietnam’s Highlight Events in 2024:

SEMIExpo Vietnam 2024: The first semiconductor expo at the National Innovation Center (NIC) in Hanoi, gathering over 5,000 representatives from major semiconductor companies to boost international cooperation and investment.

Semicon Vietnam 2024: Held in Ho Chi Minh City, featuring 150 booths to foster collaboration between Vietnamese and international tech companies.

HCM City Sourcing Fair 2024: Connecting Vietnamese parts suppliers with foreign and domestic manufacturers through 300+ direct meetings to enhance local participation in global supply chains.

Kanematsu in Semiconductor

For more than 35 years, Kanematsu have been providing solutions for semiconductor testing processes, mainly the IC test handler business to the global semiconductor market, automated solutions with emphasis on the Electronics Assembly and Memory OEM industry.

In response to the recent trend for the worldwide adoption of DX and GX, the semiconductor market is rapidly expanding. In 2030, the market is expected to grow to a scale of 1 trillion dollars. In addition, from the viewpoint of ensuring supply chains in the face of geopolitical risks, each country is accelerating its production of semiconductor chips internally.

Kanematsu has timely recognized the needs of the global semiconductor market and connected it to our business utilizing our knowledge over the years and network.

Our two key products for Semiconductor industry in Vietnam: NST IC Test handler and Getech PCB router.

Kanematsu together with NS Technologies, Inc. which was established along with the takeover of the IC test handler business from Seiko Epson Corporation, has built a system to provide services from the customer's perspective by consistently supplying development, design, production, quality assurance, sales, and maintenance service of handlers as the Kanematsu Group.

Kanematsu together with Getech Automation focus on developing and manufacturing machines and systems to address the changing needs of the PCBA and Semi-conductor industries.