Vietnam Becomes Third-Largest Chip Packaging Hub
Vietnam overtook Malaysia in semiconductor packaging.
Vietnam has risen to become the world's third-largest semiconductor packaging and testing hub, surpassing Malaysia for the first time, according to a landmark report published by the Semiconductor Industry Association. The country's ascent has been turbocharged by Intel's announcement of a $3.5 billion expansion of its Hanoi assembly and test facility, the largest single foreign investment in Vietnam's technology sector.
Chip-related exports from Vietnam grew 34% year-on-year in the first quarter of 2026, reaching $8.2 billion. Samsung, Amkor Technology, and South Korea's Hana Micron have all significantly expanded their Vietnamese operations over the past 12 months, drawn by competitive labor costs, generous tax incentives, and the country's strategic position in the US-China supply chain diversification trend.
The VN-Index in Ho Chi Minh City rose 1.4% on the news, with technology and industrial park stocks leading the gains. FPT Corporation, Vietnam's largest technology conglomerate, hit a 52-week high. Analysts at Goldman Sachs project that Vietnam's semiconductor ecosystem could generate $25 billion in annual exports by 2030, positioning the country as a critical node in the global chip supply chain.
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