japan's chip firms tap vietnam amid domestic labor crunch

2025-02-21 general

hanoi, Friday, 21 February 2025.
facing critical labor shortages at home, japanese semiconductor manufacturers are pivoting to vietnam. the southeast asian nation’s young population and government initiatives to train 50,000 semiconductor workers by 2030 are proving attractive. kyushu-based firms recently scouted talent in hanoi, seeking to fill a projected annual shortfall of 1,000 skilled workers. vietnam’s semiconductor industry is described by marvel technology’s ceo as facing a ‘once in a 100 years’ chance to develop.

investment in vietnam’s it sector

This strategic shift offers growth opportunities for investors in Vietnam’s IT and education sectors. FPT, Vietnam’s largest IT company, is central to this trend [1]. FPT’s global IT service revenue reached 30,953 billion VND in 2024, a 27.4 or 27.4% increase from 2023 [8]. Sales to Japan accounted for 40% of this total, with year-on-year growth of 32% [8]. The company plans to increase its workforce in Japan to 5,000 by the end of 2025 and is consulting with 20 universities to develop semiconductor training programs [8].

government support and industry growth

Vietnam’s government is actively supporting semiconductor industry development. They aim to train 50,000 semiconductor engineers by 2030, with 15,000 specializing in design [2][1]. The government is also offering incentives to companies building semiconductor plants [2]. A maximum support of 10 trillion VND (approximately 590 million USD) is available to the first domestic semiconductor factory that begins operations before the end of 2030 [7]. These policies are designed to create a favorable environment for investment and technological advancement [7].

regional competition and strategic alliances

Vietnam is becoming a hub for semiconductor investment, attracting interest from global players [1]. Samsung opened its largest Southeast Asia research facility in Hanoi three years ago [1]. Nvidia also announced plans to establish a research and development center in Vietnam last year [1]. This influx of foreign investment, combined with local initiatives, positions Vietnam as a key player in the evolving semiconductor landscape [5]. Experts emphasize the need for collaboration between government, universities, and businesses to fully capitalize on this opportunity [2].

risks and opportunities for investors

While Vietnam presents a promising investment landscape, challenges remain. A significant portion of existing microchip design companies are concentrated in Ho Chi Minh City [2]. This concentration highlights the need for broader geographic distribution of expertise and infrastructure [2]. Competition for skilled talent is also intensifying, with global IT giants vying for top engineers [4][6]. Investors should carefully assess these factors and consider strategic partnerships to mitigate risks and maximize returns in Vietnam’s burgeoning semiconductor industry [8].

Bronnen

labor shortage semiconductor investment