1. Global Semiconductor Demand Surges: AI and Automotive Electronics as Dual Engines Driving Industry Growth
In 2026, the global semiconductor market is experiencing a strong recovery. According to the latest data, the global semiconductor market size grew by 12.3% year-on-year in Q2 2026, with AI chips and automotive electronics as the core growth engines. The rapid iteration of AI technology, particularly the release of Nvidia's Blackwell B200 chip, has sparked demand for high-performance computing (HPC) chips and HBM4 memory, driving full capacity utilization for advanced processes (such as 3nm, 2nm) until 2027. Meanwhile, under the wave of automotive intelligence, demand for automotive-grade chips has surged, with double-digit growth in demand for various chips, from sensors and MCUs to power semiconductors.
Specifically, in the AI chip market, the global AI chip market size is expected to reach $150 billion in 2026, a 25% year-on-year increase, with data center AI chips accounting for over 60%. The sales of AI chips from vendors like Nvidia and AMD have grown significantly, boosting the capacity utilization of upstream supply chains (such as TSMC and Samsung Electronics). In automotive electronics, the penetration rate of smart cars is increasing, with the number of chips per smart car rising from about 500 in 2020 to 1,200 in 2026, with particularly significant growth in demand for automotive-grade MCUs and power semiconductors (such as silicon carbide).
1.1 AI Chips: From 'Computing Power Race' to 'Ecosystem Layout'
The growth in demand for AI chips stems not only from the increase in computing power demand but also from the construction of ecosystems. Nvidia is consolidating its leadership in the AI chip field through the CUDA ecosystem, and AMD through the ROCm ecosystem. Meanwhile, domestic vendors like Huawei and Cambricon are also accelerating their AI chip strategies, promoting the domestic substitution process. In 2026, competition in the AI chip market has shifted from single-product competition to ecosystem competition, and vendors with complete ecosystems will gain a larger market share.
1.2 Automotive Electronics: The 'Essential Chip Demand' in the Wave of Intelligence
The development of automotive intelligence has made chips a core component of smart cars. From sensors for autonomous driving (such as LiDAR and cameras) to power semiconductors for the power system, and MCUs for the infotainment system, the demand for chips runs through every aspect of a smart car. In 2026, the global automotive-grade chip market size is expected to reach $80 billion, an 18% year-on-year increase, with silicon carbide power semiconductors, due to their high-temperature resistance and high efficiency, becoming key components for new energy vehicles, with demand growth exceeding 30%.
2. Vietnam's Semiconductor Strategy: The Golden Window for Investment Has Arrived
As one of the largest economies in Southeast Asia, Vietnam has been actively developing its semiconductor industry in recent years, making it a national strategic priority. In 2026, the Vietnamese government officially released the 'Vietnam Semiconductor Industry Development Plan (2026-2030)', proposing to become a key node in the Southeast Asian semiconductor industry chain by 2030 and attract global chip manufacturers' investment. Meanwhile, local Vietnamese chip manufacturing companies have made breakthroughs, successfully mass-producing 28nm process chips, marking a crucial step for Vietnam in the semiconductor manufacturing field.
Furthermore, progress has been made in Vietnam's semiconductor talent development. In 2026, the Vietnam Semiconductor Bootcamp was launched in Ho Chi Minh City, focusing on training talent in IC design and packaging & testing to support the Vietnamese semiconductor industry. The expansion of the bootcamp (such as adding AI chip design courses) and the establishment of training bases will enhance the technical skills of Vietnamese engineers and attract more foreign enterprises to set up operations.
2.1 Policy Support: From 'Attracting Investment' to 'Industry Integration'
The Vietnamese government attracts global chip manufacturers' investment through measures such as tax incentives, land policies, and talent subsidies. For example, it offers corporate income tax reductions for semiconductor manufacturing enterprises (exempt for the first 5 years, 50% off for the next 5 years), and subsidies for R&D investment (up to 30%). At the same time, the Vietnamese government promotes semiconductor industry chain integration, encouraging cooperation between local and foreign enterprises to form a complete 'design-manufacturing-packaging & testing' industry chain.
2.2 Breakthrough in Local Manufacturing: The Significance of 28nm Process Mass Production
In 2026, local Vietnamese chip manufacturing companies successfully mass-produced 28nm process chips, a significant milestone for Vietnam's semiconductor manufacturing. The 28nm process is a mature technology widely used in automotive electronics, IoT, and other fields, with broad market demand. This breakthrough in local manufacturing not only reduces chip procurement costs for Vietnamese enterprises but also provides a foundation for attracting more downstream enterprises (such as electronics manufacturers) to set up in Vietnam.
3. Technological Barriers and Domestic Substitution: Building a Moat for Chip Investment
The chip industry is technology-intensive, and technological barriers are the core competitiveness for investment. From chip design, manufacturing, to packaging & testing, each link has high technical barriers. For example, chip design requires complex EDA tools and design experience, manufacturing requires advanced fabs and process technologies, and packaging & testing requires high-precision equipment and process control.
Domestic substitution is one of the key logics for chip investment. In recent years, domestic chip companies have made progress in design, manufacturing, and packaging & testing. For example, Naura Technology (a domestic semiconductor equipment vendor) is expected to see its net profit increase by over 280% in 2026, and its etching equipment has entered the supply chains of TSMC and Samsung; Yangtze Memory Technologies (a domestic memory chip vendor) has set new highs for its DRAM contract prices, with its 2027 capacity already sold out. These developments indicate that domestic substitution has entered a harvest period, and domestic enterprises with technological barriers will gain a larger market share.
3.1 Chip Design: From 'Following' to 'Innovation'
Chip design is an upstream segment of the chip industry, requiring strong R&D capabilities and ecosystem support. Domestic chip design companies like HiSilicon (Huawei), Cambricon, and GigaDevice have made progress in areas such as AI chips, MCUs, and memory chips. For example, HiSilicon's Kirin chips hold a certain market share in the smartphone sector, and Cambricon's AI chips are being applied in the data center sector. The progress of these companies marks a shift in domestic chip design from 'following' to 'innovation'.
3.2 Manufacturing and Packaging & Testing: The 'Key Link' in Domestic Substitution
Chip manufacturing is the core segment of the chip industry, requiring advanced fabs and process technologies. Domestic foundries like SMIC and Huahong Semiconductor have made progress in mature processes (such as 28nm, 14nm), with some of their products entering the global supply chain. In packaging & testing, domestic packaging & testing companies like JCET and Tongfu Microelectronics have competitiveness in advanced packaging (such as SiP, Fan-Out), providing packaging & testing services for domestic chip companies.
4. Long-term Growth Logic: Industry Chain Upgrading and Talent Reserve
The long-term growth of the chip industry stems from the upgrading of the industry chain and the reserve of talent. As demand for AI, automotive electronics, etc., grows, the chip industry chain will continuously upgrade, extending from mature processes to advanced processes and transforming from traditional packaging to advanced packaging. At the same time, the reserve of talent is key to industry chain upgrading, and Vietnam is cultivating a batch of engineers with IC design and packaging & testing skills through methods like semiconductor bootcamps and training bases, providing talent support for industry chain upgrading.
4.1 Industry Chain Upgrading: From 'Low-end' to 'High-end'
With the growth of global semiconductor demand, the chip industry chain will upgrade to a high-end level. For example, the growing demand for advanced processes (such as 3nm, 2nm) will drive foundries to upgrade to more advanced processes; and the growing demand for advanced packaging (such as SiP, Fan-Out) will drive packaging & testing companies to develop more high-end packaging technologies. As an emerging semiconductor nation, Vietnam will follow the pace of global industry chain upgrading, extending from mature processes to advanced processes and transforming from traditional packaging to advanced packaging.
4.2 Talent Reserve: From 'Quantity' to 'Quality'
Talent is the core resource of the chip industry. Vietnam is cultivating a batch of engineers with IC design and packaging & testing skills through methods like semiconductor bootcamps and training bases. For example, the Vietnam Semiconductor Bootcamp was launched in Ho Chi Minh City, focusing on training talent in IC design and packaging & testing, with courses including AI chip design and advanced packaging technology, providing talent support for the Vietnamese semiconductor industry. As talent is reserved, Vietnam will attract more foreign enterprises to set up operations, forming a virtuous cycle of 'talent-industry-investment'.
5. Investment Opportunities and Risk Warnings
The investment opportunities in the chip industry mainly come from global demand growth, Vietnam's semiconductor strategy, and progress in domestic substitution. Specifically, investment opportunities include: 1. AI chip vendors: such as Nvidia, AMD, HiSilicon, etc., benefiting from AI demand growth; 2. Automotive-grade chip vendors: such as NXP, Infineon, and domestic automotive chip companies (such as BYD Semiconductor); 3. Semiconductor equipment vendors: such as Naura Technology, NorthChinaRadium, etc., benefiting from domestic substitution; 4. Vietnam-related semiconductor enterprises: such as local Vietnamese chip manufacturing and packaging & testing companies.
Risk Warnings: 1. Technological Risk: The chip industry updates technology rapidly; if a company cannot keep up with technological iterations, it may be eliminated; 2. Market Risk: The global semiconductor market is volatile; if demand falls, it may lead to overcapacity; 3. Policy Risk: Adjustments in Vietnam's semiconductor policies may affect the investment decisions of foreign enterprises; 4. Competitive Risk: Global chip manufacturers are highly competitive; if a company cannot stand out in the competition, it may lose market share.
