As the tech war between the U.S. and China intensifies, Vietnam is emerging as a winner of that conflict as companies scramble to buy products that are free from the footprint of China. Chip firms in Vietnam have seen order numbers and volumes rise as global supply chains are reshaped to adhere to U.S. requirements limiting the import and export of advanced tech products to China.
Fab-9 is an example of a Vietnamese tech company that is reaping from the tech battle between America and China. The firm, based in the city of Ho Chi Minh, makes circuit boards used in chip making. Back in April when Trump ramped up tariffs on Chinese goods to 145%, Fab-9 saw a 20% bump in the orders it received in the weeks after that tariff announcement.
Bert Arucan, the president of the firm, happily remarked that the company is becoming very busy. He added that they are having conference calls with clients from different parts of the world, and many of those clients are surprised that Vietnam makes the products included in their discussions. The firm is currently installing new equipment in another building in order to increase production capacity to address this surge in demand.
For long, Taiwan and China have dominated the global semiconductor industry. However, many leading companies like Intel, Hana Micron and Amkor have factories in Vietnam. The country is now looking to tap the tech talent that has been working abroad to lift the semiconductor industry back home.
For instance, VSAP Lab, a local tech company in Vietnam, is taking on many highly skilled professionals that had stints at leading global entities like Soitec, Samsung, Synopsys and TSMC. With $72 million as investment capital, VSAP Lab is looking to produce high-end tech products like packaging for semiconductors in addition to offering chip testing services. This lab will hold the distinction of being the first such lab fully owned by locals.
The Vietnamese government has made tech and R&D major priorities. Among its initiatives in this regard was the creation of a free trade zone in Da Nang, a coastal city. Already, 23 companies are setting up shop in that area to design chips. This is just from June when the zone was created. Back in 2023, only nine firms had facilities there.
Different provinces are also implementing their own initiatives geared at promoting the tech industry within their jurisdictions. Whether all these efforts will eventually enable Vietnam to make products that favorably compete with those from global giants like Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM) remains to be seen.
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