HANOI ― Foreign companies are expanding capacity in Vietnam for testing and packaging chips while domestic firms are eyeing investments, as a shifting of industrial activity away from China gathers pace due to trade tensions with the West, executives said.

The semiconductor back-end manufacturing sector, which is less capital-intensive than more strategic front-end chipmaking in foundries, is currently dominated by China and Taiwan, but Vietnam is among the fastest-growing countries in the $95 billion segment.

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