Vietnam turns to specialised chips for its semiconductor industry

Vietnam is transitioning to specialized chips for its semiconductor industry, as highlighted in a seminar held on September 10 in Hanoi. The National Centre for Semiconductor Chip Pilot Production Support announced plans to prioritize around 20 groups of specialized chips for state procurement, focusing on AI, edge computing, telecommunications, sensors, IoT, power electronics, and hardware security.

This move is part of the Vietnam Semiconductor Industry Development Strategy to 2030, which recognizes the potential of specialized chips as a high-value-added economic sector, essential for technological self-reliance and national security. Tuan highlighted the substantial gap between chip design and commercial products, emphasizing the need for access to electronic design automation tools, licensed intellectual property libraries, and the substantial cost of tape-outs.

The biggest challenge lies in the market dynamics, known as the "chicken-and-egg" problem, where companies are hesitant to invest without customers, and customers are unwilling to purchase unproven chips. To overcome this, Tuan suggests using public investment projects, national digital transformation programs, and major infrastructure projects as initial customers for chips designed in Vietnam.

Qualcomm's vice president, An Chen, revealed the company's expansion of R&D centers in Vietnam to address AI, semiconductors, software, and systems engineering challenges. They aim to build teams that can tackle complex technical issues, contribute to global products, develop intellectual property, and nurture the next generation of engineering leaders.

Meanwhile, the Geleximco Group is investing in a chip manufacturing plant in Hung Yen, with construction set to begin in November and commercial products expected in early 2028. This initiative addresses the "first customer" challenge by prioritizing the testing and integration of control ICs, sensors, and power chips designed by Vietnamese engineers into their electric vehicle models and industrial ecosystem.

LG Innotek has also selected DEEP C Haiphong 2 Industrial Park for a $1 billion semiconductor substrate manufacturing complex, making it the first such facility outside South Korea. At the same time, Vietnamese and Lao officials discussed the potential for cooperation in digital transformation, semiconductor technology, and AI during a visit to Danang, highlighting the growing importance of these sectors in both countries.