Turning Da Nang into centre for circuit design, semiconductors and AI – Auto Car
In order to grab golden opportunities in developing semiconductor chips and artificial intelligence (AI) in Da Nang, the city’s foreign affairs sector has proactively promoted the city’s strengths on this lucrative field, in tandem with connecting with leading corporations and businesses that eye to explore investment and cooperation chances in this dynamic city, hereby contributing to the city’s extensive participation in the global supply chain of microchips and semiconductors for the sake of promoting the socio-economic development.
Accelerating faster in the IC, semiconductor and AI race
Till date, countries that are home to the world’s leading semiconductor and AI chip industries have developed comprehensive strategic partnerships with Viet Nam such as the United States, Japan and South Korea. Therefore, the role of diplomacy is very important in seeking more development opportunities as well as mobilising international resources for the sake of the city’s development strides.
Taking advantage of this opportunity, the Da Nang Department of Foreign Affairs has proactively coordinated with relevant agencies and advised the city’s administration to establish the Da Nang – U.S. Cooperation Promotion Working Group. The working group made its debut on June 25, clearly demonstrating the city’s internationalisation and dynamism in international integration.
As revealed by Director of the Department of Foreign Affairs Nguyen Xuan Binh, the Standing Deputy Head of the working group, the establishment of this special group clearly demonstrates the desire of the two sides to promote cooperation, exchange experience and create even more favoruable conditions for the two countries’ enterprises to do business, thereby contributing to promoting the cooperation and friendship between Da Nang and the U.S. in a more effective manner.
The two sides will focus on developing 6 fields such as: microchip industry, semiconductor, AI, high technology, innovation and digital economic development; green growth and sustainable development; education; health care; investment and tourism promotion.
Ms. Susan Burns, thư US Consul General in Ho Chi Minh City, said that the Working Group is a testament to the common vision and commitment made by the two sides to beef the Da Nang socio-economic development up. The two sides will build an effective and successful joint working group serving as the foundation for the cooperative relationship between the United States and Da Nang, and at the same time quickly implemente a memorandum of understanding on cooperation between the United States Agency for International Development (USAID) and Da Nang on human resource training and energy for green development.
In early 2024, the Da Nang Department of Foreign Affairs advised the municipal People’s Committee to organise the event ‘Meet Da Nang 2024’ with the motto ‘Sustainable Cooperation for Development and Prosperity’. The event helped to promote the image, strengths and readiness of Da Nang in international integration, in addition to welcoming the wave of investment in new fields such as semiconductor chip design and AI.
Also at this outstanding event, Da Nang signed many agreements with international agencies and businesses such as USAID, Synopsys International Limited and Intel Corporation.
As reported by Director of the Da Nang Investment Promotion Agency (IPA Danang) Huynh Lien Phuong, the city has recently promoted communication activities and introduced its strengths in the field of semiconductor chips and AI to many foreign partners.
In particular, after businesses trip to the U.S. and some countries taken by Da Nang Party Committee Secretary Nguyen Van Quang in November 2023, Permanent Vice Chairman of Da Nang People’s Committee Ho Ky Minh in March 2024 and Chairman of the Da Nang People’s Committee Le Trung Chinh in May 2024, in the first five months of 2024, the city welcomed representatives of 20 leading corporations and businesses in the field of semiconductor chips and AI that showed interest in exploring investment opportunities in this central Vietnamese city.
“We have always focused on key markets like the U.S. to encourage its companies specializing in semiconductor chip design to set up offices in Da Nang. For companies specializing in assembly, testing, packaging (ATP), we appealed to potential partners such as Taiwan (China), South Korea, Japan and some European countries for the establishment of their factories or the rental of best-in-class ready-built factories in industrial parks across the city”, Ms. Phuong said.
A promising destination
With the goal of making economic diplomacy the centre of foreign affairs, an important driving force in socio-economic development of Da Nang and Viet Nam as a whole in the spirit of Directive No. 15-CT/TW of the Secretariat on economic diplomacy to serve national development until 2030, the Da Nang Department of Foreign Affairs always does a good job of proactively advising, connecting and attracting international investors to Da Nang.
Besides, this agency has coordinated with relevant agencies to integrate the fields that the city is attracting foreign investment, preferential policies and mechanisms for foreign investors into the working agenda for discussions between the city’s leaders and partners so as to attract as many large corporations and businesses as possible in the fields of microchips, semiconductors, and AI to the city.
At the event ‘Meet Da Nang 2024’, Da Nang Party Committee Secretary Nguyen Van Quang affirmed that the city has fully prepared conditions for planning and infrastructure to welcome investment capital flows, especially preparing land funds associated with synchronous infrastructure in industrial zones and clusters.
Furthermore, the city has strongly improved its business investment environment, promoted administrative procedure reform, and shortened the process of implementing procedures related to investment and land.
The development of high-quality human resources has also been ceaselessly acerbated to meet the increasing requirements set by businesses, especially in the fields of microchips, semiconductors and AI.
Thanks to the great determination and efforts exerted by the Da Nang government, approaching and attracting large corporations and businesses in the fields of semiconductors, microchips and AI has achieved many positive results.
According to Director of the Da Nang Semiconductor and Artificial Intelligence Center for Research and Training (DSAC) Le Hoang Phuc, the U.S.- headquartered Marvell Technology, Inc. has already decided to open an office in Da Nang with a scale of up to 200 technicians.
Savartir, the IC design training company, has recently announced the transfer of its entire office branch in the southern metropolis of Ho Chi Minh City to Da Nang. In a similar vein, Mixel Inc., a semiconductor and core company based in the U.S., is completing procedures to establish a company in Da Nang with a scale of up to 100 engineers. Many other businesses also expressed their intention to open offices in Da Nang such as Qualcomm Group and Hyphen Deux Company.
In addition to persuading businesses to survey and explore investment opportunities in Da Nang, it is also high time for this city to keep the “eagles” – large economic corporations, and investors with large-scale and classy projects – to stay and join hands to develop microchip, semiconductor and AI ecosystems in the city.
In order to encourage them to make long-time investment attachment to the city, Mr. Le Hoang Phuc said, high-quality human resource is one of the factors that businesses pay top attention to in their investment strategies. This fact has prompted Da Nang to accelerate the training of high-quality human resources. Recently, a training course for lecturers on IC and semiconductor industries was opened to 25 lecturers from the city-based universities.
Currently, Da Nang houses 37 human resource training establishments related to the information technology industry and closely related industries to the field of microchips and semiconductors. Every year, about 5,700 students graduate from these majors. This is an extremely abundant, high-quality human resource to meet the increasing requirements of investors and businesses. At the same time, the DASC has promoted cooperation with major partners and prestigious universities such as Arizona State University in the U.S. in training human resources in the field of assembly, testing, and packaging (ATP), Synopsys in IC design training and NVIDIA in training AI human resources.
According to Ms. Huynh Lien Phuong, Da Nang is, for the time being, focusing resources on building a pilot free trade zone to invite “eagles” to do business in the city. Because the free trade zone is eligible for the application of a special policy system in commodity supervision, foreign exchange management, tax policy and business establishment to promote foreign trade development, attract foreign investment and promote international integration.
Along with that, the city is gearing up investing in infrastructure at the Da Nang Hi-tech Park and Software Park No. 2 to serve the field of semiconductor circuit design. The infrastructure of international fiber optic cable networks, electricity, transportation, and logistics completely meets the requirements of investors operating in semiconductor chips and AI industries.
The above-mentioned analyses really show that Da Nang is very ready to welcome a wave of investment in the new context. However, in order for the cooperative relationships between Da Nang and foreign partners to grow more impressively, the Da Nang Department of Foreign Affairs serves as a very important bridge in maintaining these relationships, establishing ties with new partners in the implementation of the city’s investment promotion activities.
Reporting by THANH PHUONG – Translating by A.THU