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flag Vietnam aims to boost semiconductor localisation to 50–60% by 2035 via foreign investment and new policies, despite challenges in power, skills, and supplier integration.

flag Vietnam is expanding its role in the global semiconductor supply chain, aiming to move beyond assembly by building advanced manufacturing, R&D, and local supplier networks. flag Driven by foreign investment from companies like Applied Materials and BESI, and supported by new policies such as Decree No. flag 205/2025/ND-CP, the country targets 50–60% localisation by 2035 and a stronger innovation ecosystem. flag Challenges include power reliability, skilled labor shortages, and low domestic supplier integration, with current localisation at around 36.6%. flag Government incentives, low-interest loans, and linkage programs aim to boost Vietnamese SMEs and foster technology transfer, but concerns remain over complex approvals and access for smaller firms.

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