Intel semiconductor assembly and testing plant in HCM City. (Photo: VNA) "Vietnam will train 50,000 engineers between now and 2030 toembed itself further into the global chip supply chain," saidMinister of Planning and Investment Nguyen Chi Dung at the launching event.
The minister promised more investment incentives andinfrastructure for firms in the sector. While some facilities have been inplace in the form of the National Innovation Center (NIC) and three high-techparks, new ones are on the cards for inauguration.
The launch of a NIC training centre in Hoa Lac Hi-Tech Park lastweek speaks volumes about the country's effort to create an enablingenvironment for chip producers. The 41-million-USD facility comprises twooffice blocks and a conference hall, covering 20,000 sq.mof campus.
The Vietnam International Innovation Exhibition 2023 (VIIE 2023)was another event in the mix, where NIC signed deals with heavyweights likeGoogle, Samsung, and Intel on innovation, talent pool, and research inthe sector. VIIE 2023 also saw the entry into operation of the SamsungInnovation Campus and a chip design incubation centre initiatedby Synopsys and NIC.
All those activities send a clear signal that Vietnamtakes semiconductors seriously and is pressing ahead for the target ofbuilding its first chip-making plant by the end of the decade.
According to Tran Dang Hoa, Director of FPT Conductor JSC, semiconductorchips make their way from concept to consumers through three stages: designing,assembling, and packaging and testing.
He said Vietnam was well-positioned to play a role in allthree stages. The country could gain the interest of foreign investors byoffering more incentives related to power supply, land, andmanpower.
"Vietnam is currently seen as a potential global chipproducer, much like Taiwan in the past, which managed to build itsworld-class semiconductor sector from scratch," said Hoa.
The director also revealed that chips designed by his company weresent to the Repulic of Korea for assembling and then to Taiwan for packaging& testing, before being exported to customers in the US, Europe, andJapan.
Bloomberg data showed that Vietnam's chip exports to the USincreased from 312.7 million USD in February 2022 to 562.5 million USD inFebruary 2023, accounting for 11.6% of the US chip imports, next to Malaysia(20%) and Taiwan (15.1%).
Vietnam's favourable environment for foreign investors has beenthe reason for tech giants locating their factories in the country.
Ten years ago, Intel opened its over-one-billion-dollar assemblyand testing plant in Ho Chi Minh City. Now, Amkor Technology follows suitwith another plant in Bac Ninh Province, which began operation lastmonth.
Samsung also plans to begin making semiconductor parts in Vietnam.The production of its flip-chip ball grid array, a surface-mount packagingtechnology used for integrated circuits, is expected to kickstart laterthis year.
It is worth noting that Vietnam is rich in rare earth metals(REM), which play a vital role in chip manufacturing.
In her recent visit to Vietnam, Chief Economist of the USDepartment of State Emily Blanchard told VietnamNews that if Vietnam chooses to ask for US assistance indeveloping a REM auction, the US would be happy to provide thevery assistance to do so.
"Technical assistance can extend to and often has support inhelping craft tenders or bids to generate the most interest in a wide set ofpotential partner firms overseas," said the Chief Economist.
She also underlined the role of a skilled and trained workforce insemiconductor manufacturing. As such, workforce development is one of theplaces where the US seeks to partner with Vietnam's government to createeconomic opportunities for Vietnamese citizens to work in thesector.
Minister Dung believed that Vietnam would establish itself as acritical player in the global chip supply chain in the near future. He said Vietnam "canmake it because the country has everything needed to develop itschip-manufacturing industry".
Market research conducted by Custom Market Insights in August showedthat the global semiconductor chip market is expected to recorda CAGR of 7.1% from 2023 to 2032. In 2022, the market size reached avaluation of 580.1 billion USD. The figure is anticipated to rise to 634.5billion USD in 2023 and 1.1 trillion USD in 2032.
Meanwhile, the global semiconductor assembly and testingservices market is forecast to reach a CAGR of 5.3% duringthe period. In 2023, the market size is projected to hit 38.1 billion USD./.
VNA