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The VietnamSemiconductors Market size is projected to reac 7.01 billion by 2028, and grow at a CAGR of 6.69% from 2023 and 2028. The growth of the market depends on several factors including sustainable growth in the global semiconductor industry, increasing investments in the semiconductor industry and growing use of IoT. A semiconductor integrated chip (IC) functions as a timer, an amplifier, and a microprocessor, and it has data storage capabilities. Manufacturers fabricate these ICs using the designs provided by fabless semiconductor companies. Fabless semiconductor companies design and sell hardware devices and semiconductor chipsets. However, fabless semiconductor companies outsource the fabrication process of hardware devices to semiconductor foundries. Semiconductor ICs find applications in major industries, including communications, consumer electronics, automotive, and industrial.
The report includes a comprehensive outlook on the Vietnam Semiconductors Market offering forecasts for the industry segmented by Application, which comprises consumer electronics, communications, automotive, medical devices, and others. Additionally, it categorizes End-user into memory, foundry, and IDM and covers Device including PMICs, microchips, and RFID. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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Sustainable growth in global semiconductor industry is notably driving the market growth. Globally, the semiconductor market has been growing steadily. The expansion of the global semiconductor market is being aided by the rise in sales of consumer electronics and microelectronics. The need for semiconductor integrated circuits (ICs) is anticipated to rise gradually over the course of the forecast period due to advancements in the consumer electronics industry, including the introduction of 3D and ultra-UHD TVs as well as hybrid laptops. Due to this, there will be a need for semiconductor devices, which will fuel the market expansion. Improved DRAM and NAND-integrated mobile devices and data centers are in demand due to the current need for devices with higher performance levels in terms of speed and capacity.
Furthermore, these sophisticated changes necessitate ongoing improvements in customer offerings. Making capital investments is essential to guaranteeing that businesses engaged in research and development never experience cash flow issues. The proliferation of advanced semiconductor devices will only encourage greater capital expenditures. Thus, the growth in the global semiconductor industry will propel the growth of the market during the forecast period.
Growing investments in 5G technology is an emerging trend shaping the market growth. The 5G mobile network is the most recent mobile wireless technology, which is an upgrade to the 4G mobile network. This technology improves download speeds, enables networks to connect to a variety of devices, and reduces response times. Vietnam is investing in this technology to provide its citizens with superior and cutting-edge services. Additionally, adopting 5G technology will assist this nation in achieving broader macroeconomic benefits. Therefore, it encourages the Vietnamese government and businesses to invest in this technology. For instance, Vietnam intends to extend 5G network coverage in urban areas and high-tech industrial zones by 2022 and to license the commercialization of the fifth-generation (5G) network across the country.
Moreover, increasing investments in 5G technology will increase demand for 5G-enabled smartphones, which will increase demand for high-speed and high-efficiency compound semiconductor devices. With advancements in 5G technology, data rates can reach 1-10 Gb/s, and latency can be reduced to 1 ms, which will increase the demand for compound semiconductor devices. Compound semiconductors are necessary for 5G technology to achieve the desired speed and efficiency. With increasing investments in 5G technology in Vietnam, it is anticipated that the demand for Vietnam semiconductors will drive the market growth during the forecast period.
Excess semiconductor inventory is a significant challenge hindering the market growth. The excess stock and inventory of semiconductors is one of the biggest challenges faced by the market. As the semiconductor market is extremely volatile and prone to cyclic fluctuations, demand forecasting becomes a major challenge. In the second quarter of 2022, the average inventory period increased to 121 days from 117 days in the last quarter of 2021. Furthermore, the high level of inventory in the industry is majorly attributed to the gradual decline in demand for DRAM and NAND memory. Both these products, which witnessed an increase in production volume a couple of years ago, are currently witnessing negative demand, which has resulted in inventory accumulation and reduced prices. For instance, the average price of DRAM fell by 3%-8% due to the outbreak of the Russia-Ukraine wars.
As a result, companies must manage and maintain IC inventories to avoid monetary losses. Concerning semiconductors, the release of a new generation of any product class by competitors and its successful adoption in the Vietnam semiconductors market may lead to an entire line of equipment becoming obsolete. Thus, the excess stock of components purchased during a bulk sale by suppliers may also need to be written off, which can lead to huge operational losses for companies. Thus, such factors will hamper the growth of the market during the forecast period.
The market share growth by the consumer electronics segment will be significant during the forecast period. The consumer electronics industry plays a significant and indispensable role in Vietnam's economic growth. Mobile devices, smartphones, wearables, tablets, televisions, air conditioners, refrigerators, washing machines, and wireless charging platforms dominate the consumer electronics market in this country.
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The consumer electronics segment was the largest and was valued at USD 2.61 billion in 2018. A major factor in the expansion of the semiconductors market in the consumer electronics sector is the rising demand for mobile and other computing devices with high processing power. To improve the performance of consumer electronic devices, it is necessary to modify their core. Traditional single-core and dual-core processors have evolved into quad-core and octa-core processors, and ICs now contain more semiconductor components than their predecessors. The integration of these new processors increases the power and performance of devices. These high-end processors give consumer electronics devices enormous processing power, increasing in demand for semiconductors. Therefore, with the expansion of the consumer electronics market in Vietnam, the demand for the market will increase during the forecast period.
The high adoption and development of NOT-AND (NAND) technology will drive the growth of the memory segment. Many prominent memory device manufacturers have announced the development and commercialization of various products integrated with this technology. For instance, in December 2020, SK HYNIX Inc. announced the launch of its latest generation of 3D NAND, which features 176 layers of charge trap flash memory cells. SK Hynix is the second NAND manufacturer to reach this layer count, following Micron's announcement of 176-layer NAND. The manufacturing process of this advanced NAND memory is very complicated and requires advanced manufacturing equipment. The market for such advanced technology has high growth potential. Therefore, many companies, such as Samsung, are investing heavily in revamping and increasing their production lines. This will drive the growth of the memory segment of the market during the forecast period.
The Vietnam Semiconductors Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Vietnam Semiconductors Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Advanced Micro Devices Inc. - The company offers semiconductor solutions for computer processors and graphics technologies.
Analog Devices Inc. - The company offers semiconductor solutions such as transistors, ICs, and Wafer.
Broadcom Inc. - The company offers semiconductors such as SAS IO controllers, ROC ICs, and SAS expander ICs.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The Vietnam Semiconductors Market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018-2028
Vietnam Semiconductors Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.69% |
Market Growth 2024-2028 |
USD 1.94 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.22 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advanced Micro Devices Inc., Analog Devices Inc., Broadcom Inc., Fuji Electric Co. Ltd., Hitachi Ltd., Infineon Technologies AG, Intel Corp., Microchip Technology Inc., NVIDIA Corp., NXP Semiconductors NV, ON Semiconductor Corp., Qualcomm Inc., Renesas Electronics Corp., Samsung Electronics Co. Ltd., Semiconductor Manufacturing International Corp., SK hynix Co. Ltd., STMicroelectronics International N.V., Taiwan Semiconductor Manufacturing Co. Ltd., Texas Instruments Inc., and Toshiba Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Market Segmentation by Device
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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