Chip makers are starting to leave China. Your destiny is the next great power in semiconductors.

The pressure that the US and its allies are putting on Chinese semiconductor manufacturers is having relatively predictable consequences: some are starting to leave China to settle in the country where they can freely develop their business. However, this strategy is not limited to Chinese companies. In the country led by Xi Jinping, many foreign companies have integrated circuit factories such as Samsung, TSMC, Intel or UMC, and some of them are already preparing to leave China.

For this giant Asian country, this possible large-scale flight is bad news. The semiconductor industry has a profound impact on both the Chinese economy and the country’s technological development, so the exit of some chip makers represents an obvious loss of value. The US, South Korea, Taiwan or Japan would suffer in the same way if a particular situation triggered a mass exodus like the one beginning to take shape in China. Ultimately, for these and other developed countries, the integrated circuit industry is of strategic importance.

Next destination: Vietnam.

Hana Micron, a South Korean company specializing in integrated circuit assembly, verification and packaging, is moving its facilities from China to Vietnam. According to Reuters, the company plans to invest $923.5 million over the next few years to strengthen its structure in the Southeast Asian country. In addition, American companies Amkor Technology and Intel have also already invested billions of dollars in Vietnam to consolidate their chip production and packaging infrastructure in the country.

What’s not clear yet is which Chinese manufacturers are planning to leave China, as Tom’s Hardware reports, but we’ll likely be able to confirm that information in the coming weeks. Anyway, it’s interesting to know What does Taiwan have? what makes it such an attractive country for the integrated circuit industry. And most importantly, your government is creating the right climate to facilitate the entry of foreign companies.

In fact, the Vietnamese administration has set itself a very ambitious goal: it intends to earn $100 billion from the chip industry and more than $1 billion from the electronics sector. And all this in 2050. In just two and a half decades. It may seem like a long time, but it’s not. When it comes to fully rebuilding a sector that needs to establish itself as the center of the country’s economy, it’s a no-brainer.

The integrated circuit industry is not something foreign to Vietnam. Currently, Intel, Samsung, Amkor, Texas Instruments, Qualcomm and Infineon are some of the companies present in this country. However, Pham Minh, the Prime Minister of Vietnam, made a very detailed plan which aims to develop custom chip design capabilities, promote the growth of the electronics sector, train skilled workers and attract foreign investment. However, that’s not all. In 2050, this country aims to have six semiconductor manufacturing plants and twenty packaging and testing plants.

To achieve all these goals, Minh divided his strategy into three different stages. The first has just launched and aims to attract foreign direct investment to enable the creation of at least 100 chip design companies, a semiconductor manufacturing plant and ten packaging and testing plants. The second phase will begin in 2030 and will train more than 100,000 semiconductor engineers, create at least 200 chip design companies, build two more factories, and create fifteen packaging and testing facilities.

The third and final phase will begin in 2040 and will aim to create at least 300 integrated circuit design companies, three semiconductor foundries and 20 packaging and testing facilities. If everything goes according to the Vietnamese government’s plan In 2050, there will be more than 600 companies in this country. chip design, as well as the six semiconductor manufacturing plants and twenty packaging plants that we talked about a few lines above. He certainly lacks ambition.

Image | TSMK

Additional information | Tom’s Equipment

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