Semiconductors in Vietnam: Key market research findings
- Availability of low-cost labor to drive market growth
- Power management ICs to dominate the market
- Key vendors – Intel, Hitachi, ON Semiconductor, Saigon Semiconductor Technology, NXP Semiconductors, and STMicroelectronics
Technavio’s market research analysts predict the semiconductor market in Vietnam to grow at a CAGR of around 15% between 2016 and 2020. The availability of low-cost labor in the region is the primary driving force behind the growth of this market. Due to the availability of cheap labor, a large number of semiconductor and electronics manufacturers are setting up their bases in Vietnam. The majority of the investments are being made by key players like Intel, Samsung, Microsoft, and LG. During 2015, the power management IC segment accounted for almost 63% of the market share to become the dominant shareholder in the semiconductor market in Vietnam. Power management ICs help support voltage scaling and power delivery sequencing in electronic devices like mobile phones, tablets, TVs, computers, and portable music players. Growth in the consumer electronics market and the communications sector in Vietnam coupled with the rising demand for battery-operated cars and wearables are factors that will influence growth in this segment during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the semiconductor segments based on application.
“Recently, vendors have started focusing on memory devices such as 3D negative-AND (NAND) and dynamic random access memory (DRAM) owing to their higher market potential when compared to other semiconductor devices. With the rising demand for high-functionality smartphones, tablet PCs, and notebooks, original equipment manufacturers (OEMs) are likely to introduce new products integrated with 3D NAND. In addition, vendors are also focusing on revamping their facilities to support higher semiconductor production,” says Sunil Kumar Singh, Lead Analyst, Hardware & Semiconductor, Technavio Research.
During 2015, the consumer electronics segment dominated the semiconductor market in Vietnam by occupying more than 80% of the overall market space. The growing demand for smartphones, tablets, and laptops coupled with the increasing penetration of the Internet are some of the other factors fueling growth in this segment. Smartphones and tablets were the major revenue contributors with smartphones accounting for a share of more than 50%. Two of the major electronics companies in Vietnam are FPT Group and the Mobile World Joint Stock Company.
The key vendors in the market include Intel, Hitachi, ON Semiconductor, Saigon Semiconductor Technology, NXP Semiconductors, and STMicroelectronics. The Vietnamese semiconductor market is an emerging market with immense potential for growth in the coming years. Consequently, several blue-chip companies such as Intel, Samsung, and Microsoft have started investing substantially in the market to take advantage of this market’s high growth potential.
A more detailed analysis is available in the Technavio report, Global Semiconductor Market in Vietnam 2016-2020.
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