Qualcomm, a semiconductor company based in the United States, has opened an AI research and development center in Vietnam.

The facility will focus on advancing AI technologies for smartphones, personal computers, extended reality (XR), automotive, and Internet of Things (IoT) devices, according to a company statement issued on June 10, 2025.

Qualcomm explained that this initiative aligns with Vietnam’s strategies for AI, semiconductor development, and digital transformation.

The center will emphasize technology transfer, ecosystem collaboration, and capacity building.

During a meeting in Hanoi on June 10, 2025, Vietnam’s minister of public security To Lam encouraged Qualcomm’s president of global affairs Alex Rogers to expand the company’s operations in the country.

He highlighted the importance of focusing on semiconductors and digital infrastructure.

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🔗 Source: Reuters

🧠 Food for thought

1️⃣ Vietnam’s strategic pivot from manufacturing hub to semiconductor player

Qualcomm’s new AI center represents a key milestone in Vietnam’s transformation from an electronics assembly hub to a semiconductor innovation center.

The country’s semiconductor market is projected to reach $31.28 billion by 2027, growing at an impressive 11.6% CAGR from 2023 to 20271.

This rapid expansion is driven by deliberate government policies, including a national semiconductor strategy that aims to attract 300 design companies and dramatically increase manufacturing capacity by 20501.

Vietnam has already attracted major global players like Intel, whose Ho Chi Minh City facility has become one of its largest assembly and testing operations worldwide1.

The government’s commitment includes training 50,000 semiconductor engineers by 2030, addressing the critical talent pipeline needed to support this growth2.

2️⃣ Qualcomm’s long-term investment strategy in Vietnam bearing fruit

Qualcomm’s new AI R&D center builds on its established presence in Vietnam, where it has been cultivating local tech talent since at least 2019.

The company launched the Qualcomm Vietnam Innovation Challenge in collaboration with Vietnam’s Ministry of Science and Technology specifically to support small and medium-sized enterprises in emerging tech sectors like 5G, IoT, and machine learning3.

This initiative provided Vietnamese startups with business coaching, engineering resources, and intellectual property protection assistance, laying groundwork for a more sophisticated tech ecosystem3.

The new AI center represents a significant escalation of Qualcomm’s commitment, reportedly becoming the company’s third-largest AI R&D center globally after those in India and Ireland4.

3️⃣ Vietnam’s digital transformation creating fertile ground for AI development

Vietnam’s digital economy is rapidly expanding, projected to reach approximately $45 billion by 2025 with potential growth to $200 billion by 20305.

The government has established an ambitious Digital Infrastructure Strategy that includes nationwide 5G deployment by 2025 with 99% population coverage targeted by 20306.

Digital services already account for over 12% of Vietnam’s GDP as of 2023, showing stronger digital adoption than many ASEAN neighbors5.

Key sectors including banking, healthcare, and telecommunications are increasingly implementing digital solutions, creating diverse testing grounds for AI applications5.

The establishment of specialized facilities like the Centre for the Fourth Industrial Revolution in Ho Chi Minh City demonstrates Vietnam’s institutional commitment to advanced technologies including AI7.

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