Industrial properties benefit from the dynamically developing semiconductor sector

Driven by the growing demand for semiconductor manufacturing and assembly, companies are actively seeking factories and industrial parks equipped with the necessary infrastructure and services, according to Thomas Rooney, senior manager of industrial services at Savills Vietnam.

HCM City (VNA) – Driven by the growing demand for semiconductor manufacturing and assembly, companies are actively looking for factories and industrial parks with the necessary infrastructure and services, says Thomas Rooney, senior manager of industrial services at Savills Vietnam.

Stable power, high-speed internet and an efficient water treatment system are top priorities for these companies, Rooney explained.

He said Vietnam is strategically located in Southeast Asia and provides easy access to major regional markets. In addition, the country boasts favorable natural conditions and a large amount of rare earth elements, a key raw material in the production of semiconductors. Political stability and various investment incentives also make it an attractive place for foreign companies.

Rooney predicted that the rising wave of semiconductor investment would significantly boost industrial real estate development in northern Vietnam, known for high-value projects related to the production of computers, electronics and electrical products.

Vietnam’s semiconductor industry is expected to exceed $6.16 billion by the end of 2024, cementing the country’s position as a key manufacturing hub for the world’s leading semiconductor makers, he said.

Citing forecasts from the Semiconductor Industry Association of America (SIA), he noted that the global semiconductor market is poised for significant growth, reaching an estimated value of $600 billion by 2025, an increase of 14% compared to 2023.

To attract capital to semiconductors and industrial real estate, he suggested that local authorities and enterprises improve mechanisms, policies, infrastructure and human resources to best meet the stringent demands of this sector./