Vietnam gears up for semiconductor future: nurturing 50,000 engineers by 2030 – DIGITIMES
Credit: AFP
As the global technology landscape continues to evolve, Vietnam is positioning itself for a promising future in the semiconductor industry. With more international semiconductor companies establishing a presence in Vietnam and aiming to create a local semiconductor ecosystem, the nation’s authorities are now confronting the urgent need to nurture a substantial talent pool for this industry.
According to VietnamPlus, Vietnam’s Minister of Planning and Investment, Nguyen Chi Dung, pledged to support the semiconductor sector during a national summit dedicated to this industry. He stressed the importance of collaboration with major semiconductor companies in talent development. Additionally, he instructed the Ministry of Planning and Investment, the Ministry of Information and Communications, and related departments to collaborate on human resource initiatives with the ambitious target of producing 50,000 engineers by 2030.
Vietnam also demonstrated its commitment to nurturing semiconductor talent through strategic collaborations with industry leaders. National Innovation Center (NIC), in partnership with US entities Synopsys and the University of Arizona, along with Cadence, has signed memorandums of understanding (MOUs). While the agreements with Synopsys and the University of Arizona primarily concentrate on human resource development in Vietnam’s semiconductor industry, the MOU with Cadence aims to enhance the capabilities for semiconductor product design and development in Vietnam.
Furthermore, the Vietnamese Ministry of Education has signed an MOU with semiconductor giant Intel, reinforcing its dedication to cultivating high-tech human resources.
According to a recent DIGITIMES Research study, the country has seen a notable increase in the percentage of its population holding STEM bachelor’s degrees, rising from 0.49% to 0.58% during the 2017-2018 academic year. However, the proportion of STEM master’s and doctoral students remains significantly lower, at less than 0.02%.
Building the nation’s semiconductor hub
In 2019, Vietnam laid the foundation for the National Innovation Center (NIC) as it strategically embarked on establishing high-tech zones in Hanoi, Ho Chi Minh City, and Haiphong, solidifying its status as a significant semiconductor industry hub.
Fast forward to October 2023, and the NIC’s innovation base in Hanoi, situated within the Hoa Lac High-tech Park, was officially unveiled with a substantial investment of US$41.7 million. Spanning 20,000 square meters, this facility encompasses two office buildings and a conference center, primarily designed to foster the growth of the national startup ecosystem. It aims to attract domestic and international startups, laboratories, and major enterprises to establish operations.
Foreign capital: energizing Vietnam’s semiconductor growth
Vietnam, with its numerous advantages and expanding infrastructure, is fast becoming the preferred choice for global semiconductor giants to establish their production facilities.
In September 2023, South Korean OSAT firm Hana Micron established a semiconductor manufacturing plant in Bac Giang Province, marking a significant milestone as the region’s inaugural semiconductor manufacturer. Hana Micron has already invested US$600 million in Vietnam and plans to increase that figure to over US$1 billion by 2025, potentially generating revenues exceeding US$800 million and creating more than 4,000 employment opportunities. In 2023, Hana Micron is expected to achieve a revenue of US$300 million.
Merely a month later, OSAT company Amkor unveiled a colossal US$1.6 billion investment in a cutting-edge testing and packaging facility specializing in high-bandwidth memory (HBM) multi-chip system-in-package (SiP) technology, situated in the Yen Phong II-C Industrial Park in the northern Bac Ninh Province. The construction of the initial phase commenced in the first quarter of 2022.
As reported by The Register, Vietnam currently relies on the import of semiconductor chips entirely. Only two local companies, the state-owned telecom provider Viettel and IT giant FPT have ventured into chip design. While chip design, processing, assembly, and testing are predominantly conducted by foreign corporations, exemplified by Intel’s test and assembly facility in Ho Chi Minh City, which mainly exports semiconductor products.
With these strategic moves in talent development and foreign investment, Vietnam aims to make significant strides in the global semiconductor industry.