VN goes all-in on semiconduct
[Vietnam goes all-in on semiconduct]
On October 29, 2023, the Vietnamese government convened the 'Vietnam Semiconductor Summit' to gather insights from global industry leaders regarding the current landscape of the Vietnamese semiconductor sector, potential avenues for growth, and strategies for talent development. Distinguished attendees included John Neufer, President of the American Semiconductor Industry Association; Shitai Liu, Vice President of Qualcomm, a prominent wireless communication semiconductor firm; Robert Lee, Vice President of Synopsis, specializing in semiconductor design and software; and Michael Shin, Vice President of Cadence, a leading semiconductor design automation company. The summit facilitated crucial discussions on industry advancements and collaborative opportunities.
As part of its commitment to nurturing the semiconductor industry, the Vietnamese government launched the 'Vietnam Semiconductor Innovation Network' and established a national innovation center across key regions: Hanoi in the north, Da Nang in central Vietnam, Ho Chi Minh City in the south, and High-Tech industrial complexes poised to attract semiconductor enterprises. Plans were unveiled to develop specialized educational facilities and research hubs in five strategic locations, including Hanoi National University, Ho Chi Minh National University, Da Nang University, Hanoi University of Science and Technology, and the Postal and Telecommunication Technology Research Institute, with the goal of cultivating 50,000 semiconductor professionals by 2030.
Since designating the semiconductor industry as a core national priority in 2012, Vietnam has actively courted semiconductor investments, recognizing the imperative of transitioning from labor-intensive sectors to high-tech industries to avoid stagnation. This strategic shift underscores the nation's vision for sustained economic development. Notably, concerted efforts were made to attract Samsung Electronics to invest in semiconductor manufacturing, culminating in an $850 million investment in 2021 aimed at mass-producing FC-BGA, a crucial semiconductor substrate vital for artificial intelligence, data centers, and electric vehicles.
Intel has played a pivotal role in Vietnam's semiconductor journey since inaugurating its first semiconductor assembly and test plant in 2010, channeling substantial investments totaling $1.5 billion into semiconductor packaging and testing operations. Recent developments have seen Amkor Technology, a global semiconductor packaging giant, inject $520 million into a Vietnamese factory, with plans for an additional $1.075 billion investment. The heightened collaboration between Vietnam and the United States, exemplified by President Biden's visit in September, underscores a shared commitment to bolstering the semiconductor sector.
The 'U.S.-Vietnam Innovation and Investment Summit,' convened by Secretary of State Blinken and Vietnam's Minister of Planning and Investment, witnessed significant pledges from American semiconductor firms. Marvell Technology committed to establishing a design center in Ho Chi Minh City by 2024, while Synopsis announced plans to relocate its engineering training center from China to Vietnam, doubling its workforce and intensifying integrated circuit design and software engineering training initiatives.
Despite Vietnam's strides in semiconductor development, concerns have been voiced regarding the sustainability of its aggressive semiconductor push. At the Vietnam Semiconductor Summit, industry experts cautioned against overlooking challenges, urging a focus on packaging and testing capabilities where Vietnam demonstrates strength. Additionally, the formidable capital requirements for semiconductor infrastructure were highlighted, necessitating robust competition against global heavyweights.
The shifting geopolitical landscape, underscored by the U.S.-China tensions and supply chain vulnerabilities, presents Vietnam with a window of opportunity to position itself as a semiconductor hub. However, Vietnam must distinguish itself from China and demonstrate innovation and adaptability in its policy framework to instill confidence among global investors.
To maximize its allure, Vietnam must devise inventive incentives within legal parameters, streamline visa issuance processes for global semiconductor experts, and leverage its renewable energy investments to mitigate carbon tax barriers. Furthermore, transparency and flexibility in policymaking are essential to dispel lingering doubts and foster investor confidence in Vietnam's semiconductor ecosystem.
