Deputy Minister of Information and Communications Nguyen Huy Dung says that Vietnam has strategic relations with semiconductor powerhouses.

On January 26, the Da Nang People’s Committee announced the establishment of DSAC – the Da Nang Semiconductor and Artificial Intelligence Center for Research and Training.

DSAC has three major functions: training and fostering the development of microchip designing, semiconductors and AI (artificial intelligence); attracting investment in microchip semiconductors and AI; and working with domestic and foreign partners to promote research and incubation of startups in the field of microchip designing, designing, and AI.

In 2024-2025, DSAC will focus on four major tasks: completing the legal framework on structuring and consolidating human resources and personnel; proposing the draft of a mechanism to develop microchips and AI in Da Nang; carrying out training programs; and promoting international cooperation and support to enterprises.

Dung from the Ministry of Information and Communications (MIC) said semiconductors is a digital technology and is one of the most important fundamental industries with great impact on every aspect of socio-economic life, and on national defence and security. 

MIC is drafting a national microchip strategy which is expected to be submitted to the government for approval in the first quarter 2024.

According to Dung, most advanced chips in the world are designed in the US and Japan, while the machine systems used for chip manufacturing are mostly made in the Netherlands, with chip production lines mostly located in Taiwan (China) and South Korea. Packaging is carried out in China.

The international division of labor in the supply chain is an optimal process based on the traditions of every country, which is the result of stiff competition over many years among countries and technology groups. In developing semiconductor microchips, international cooperation between Vietnam and international partners plays a very important role.

Vietnam is the only country in the world which has strategic relations with semiconductor powerhouses, including emerging powerhouses. This should be exploited to develop semiconductor microchip technology, according to Dung.

Dung said there are three important stages in semiconductor industry: designing; manufacturing; and assembling, verification and packaging. In general, countries begin with designing, which can be done by startups; however, the market is very competitive.

The strategy pursued by Vietnam includes: developing startups in chip designing with human resources designing and manufacturing modules; attracting foreign direct investment (FDI), joint ventures and Vietnamese enterprises in assembling, testing and packaging; and building chip manufacturing factories.

Vietnam aims to have 50,000 chip designing engineers by 2030, 200,000 electronics engineers for semiconductors, and 500,000 workers in the semiconductor industry.

Vietnam has defined five key establishments offering training in semiconductors, including Hanoi National University, HCM City National University, Hanoi University of Science and Technology, FPT University and Da Nang University of Science and Technology. 

Vietnam will develop a national network of research, designing and manufacturing centers serving the semiconductor industry, with three such centers by 2030 to be located in Hanoi, Da Nang and HCM City. The first plant is expected to become operational by 2025.

At a meeting with students of the National Economics University in Hanoi during his working visit to Vietnam in early January, US Deputy Secretary of State Jose Fernandez said American corporations are willing to invest in Vietnam, and semiconductors is one of those fields. The US government has pledged to support Vietnam to develop human resources in the industry, including an initial seeding grant of $2 million as shown in the Joint Statement in September 2023.

Fernandez said the US will request OECD to study to find out what needs to be done to create an ecosystem in Vietnam to provide talents that semiconductor chip manufacturing companies need. The US will join Vietnam in efforts to put recommendations in the study into practice. 

In November 2023, during his working visit to Vietnam, Japanese Minister of Economy, Trade and Industry Nishimura Yasutoshi said Japan wants the two sides to focus on important projects in key business fields, including AI, innovation, biotechnology, pharmacy, healthcare, and, especially, semiconductors.

Viet Nam Net