Scenario: An OSAT (chip assembly and testing) company in Malaysia is considering a second site in Vietnam after a major customer shifted part of its orders there. The board’s question is precise: has Vietnam passed the “first mover wins” phase, or is there still room in assembly and testing? This article answers segment by segment.
Assembly and testing: the only segment with customers already waiting
The core difference between semiconductors and the other industries in this series: demand is real and already here. Large electronics plants in Bac Ninh, Bac Giang and Thai Nguyen consume large volumes of chips needing packaging and testing, some of which must still be sent to Malaysia or China. An OSAT facility in the north shortens the supply chain for exactly these customers — a business case that does not depend on “future market expectations”.
The 2026–2027 window is open because electronics brands are diversifying packaging locations after recent supply-chain disruptions. Players with advanced-packaging capability or testing for power chips and automotive chips will be welcomed; conventional packaging carries thinner margins and fiercer competition.
Why wafer fabs are not the 2026–2027 game
Contrary to the media image, a wafer fab in Vietnam within two years remains a long-term story: billions of dollars, ultra-stable power, huge ultrapure-water volumes, and a specialty-chemical ecosystem Vietnam lacks. Unready infrastructure is a bigger barrier than any legal one.
The real opportunity lies in semiconductor support infrastructure (industrial gases, chemicals, packaging materials, equipment), not in fabs.
Entry barriers: talent and the supporting supply chain
Talent is the number-one bottleneck. Experienced chip packaging and testing engineers are very few in Vietnam; projects must budget for 12–24 months of training or expert rotation, plus work-permit and expatriate-housing costs. Recruitment planning must start before the plant is completed, not after.
The second barrier is specialty materials and chemicals: most must be imported and may face export controls from the country of origin in some cases. Long-term supply contracts and buffer-stock plans are mandatory, not optional.
High-tech incentives and investment procedures
Semiconductor projects, especially inside high-tech parks (such as Hoa Lac or Ho Chi Minh City Hi-Tech Park), may qualify for corporate income tax incentives under the Corporate Income Tax Law 67/2025/QH15 (effective 1 October 2025) as high-tech projects. The IRC is issued by the hi-tech park management board, usually with a one-stop support mechanism for investors.
Important note: high-tech incentives are tied to commitments on R&D spending ratios and high-skilled workforce ratios. The application dossier must present these commitments quantitatively, not as qualitative declarations.
Investment decision checklist
Before signing a land lease, investors should be able to answer four questions. One: is there a letter of interest from at least one major customer — an OSAT without an anchor customer is a high-risk model. Two: do backup power and power quality at the site meet 24/7 production requirements. Three: is the three-year workforce plan fully budgeted. Four: has the tax incentive level been recorded in writing in the investment dossier, rather than left as a verbal promise.
Frequently asked questions
Does an OSAT project in Vietnam qualify as high-tech for incentives?
Possibly, if it meets high-tech criteria and sits in a hi-tech park or is recognized by the competent authority. Recognition is based on a dossier proving technology, equipment and workforce — not automatic merely because the industry is semiconductors.
Are foreign investors capped on ownership in semiconductor projects?
No. Chip manufacturing, assembly and testing are not on the market-access restriction list; foreign investors may hold 100% equity.
Are imports of chemicals and materials for chip production controlled?
Some chemicals and specialty gases fall under chemical-safety, fire-prevention and environmental management; some dual-use materials may face export controls from the country of origin. The import goods list should be screened at the plant-design stage.
Should an OSAT plant go north or south?
The north (Bac Ninh, Bac Giang, Thai Nguyen, Hai Phong) is close to the largest electronics customer cluster — a decisive logistics and engineering-coordination advantage for an OSAT serving existing customers. The south fits better if the strategy is serving export markets via Cat Lai port.
This article has been quality-reviewed by the FLAW AI Legal Council