Da Nang’s steps in recent times have been highly appreciated by the business community and investors as they clearly demonstrate initiative and determination, aiming to gradually form a synchronous semiconductor and artificial intelligence (AI) ecosystem.

Da Nang Party Committee Secretary Nguyen Van Quang (right) presents a momento to Mr. Lee Jin Wook, Deputy General Director of Samsung Electronics's semiconductor cluster, in Pyeontaek, South Korea.

Increasing investment promotion

October 10, 2023 marked the time when Da Nang took the first step and showed its determination to develop the semiconductor industry when the Da Nang People's Committee organised a workshop on developing human resources to serve the Da Nang’ semiconductor industry. The event was held right after the joint statement on upgrading the Comprehensive Strategic Partnership between Viet Nam and the United States in September 2023.

The joint statement stated: “The United States affirmed its commitment to increasing support for Viet Nam in the training and development of a high-tech workforce. Acknowledging Viet Nam’s tremendous potential as a major player in the semiconductor industry, the two Leaders pledged to support the rapid development of Viet Nam’s semiconductor ecosystem and to work together energetically to improve Viet Nam’s position in the global semiconductor supply chain...”.

The city’s leaders identified that this is an opportunity that needs to be seized and specifically implemented in the new situation.

Immediately after that, in November 2023, Da Nang Party Secretary cum Head of the city’s National Assembly Deputies’ Delegation Nguyen Van Quang led a city delegation to the United States to work with leading US corporations in semiconductor design such as Synopsys, Nvidia, Marvell and Intel.

Within the framework of the APEC 2023 event in the United States, the Da Nang People’s Committee signed a memorandum of understanding on cooperation in semiconductor development in Da Nang in the coming time with Synopsys Group.

At the end of February 2024, Standing Vice Chairman of the Da Nang People’s Committee Ho Ky Minh led a delegation of the city leaders to the United States to work with businesses Qualcomm, ARM and Ampere.

During the working trip, representatives from the Da Nang Semiconductor and Artificial Intelligence Center for Research and Training (DSAC), in coordination with the Oregon State Government and the Portland University, organised a seminar on investment in Da Nang in the field of semiconductors and AI.

After the business trips, many leaders of the technology corporations positively assessed the investment potential in the field of microchip design and AI in Da Nang and conducted a survey of the investment environment and prepared conditions for cooperation in infrastructure development and human resource training in the city. Specifically, the two corporations Qualcomm and Marvell had a field trip to Da Nang and worked with the city’s leaders in early 2024.

At the end of April 2024, a delegation led by Keith Strier, Vice President of Worldwide AI Initiative at NVIDIA Nvidia Corporation, had a working session in Da Nang within the framework of the corporation’s second visit to Viet Nam within 4 months, thereby learning about investment conditions in Da Nang.

As a result of the investment promotion work, in mid-May, the Marvell Technology, Inc. decided to open a chip design office in Da Nang. Immediately after that, on May 30, Synopsys Viet Nam Co., Ltd. opened a new office in Da Nang with an area of 2,800m2, arranging about working places for a staff of 280. The opening of the new office, combined with the previous office, helped expand the working area.

In early July 2024, Secretary Quang lead the city’s working delegation to South Korea, notably working at the semiconductor factory of Samsung Electronics, Dentium Co., Ltd., and KP Aero Industries Co., Ltd. After the working trip, on August 2, Mr. Choi Joo Ho, General Director of Samsung Viet Nam Complex visited Da Nang to discuss further cooperation between the two sides. Along with business trips and investment promotion, Da Nang has welcomed and worked with about 30 large corporations and enterprises in semiconductors and AI in the first seven months of 2024.

According to Mr. Trinh Thanh Lam, Director of Synopsis South Asia, after the conference on October 10, 2023, many working sessions between the city’s leaders and the world’s leading chip design companies, as well as companies with factories in the semiconductor field that have been promoted in Da Nang or in the United States, Taiwan (China) and South Korea.

The Da Nang government has shown great vision and determination from procedures, policy mechanisms to infrastructure construction to welcome investors. In particular, on June 26, 2024, the National Assembly issued Resolution No. 136/2024/QH15 on the organisation of urban government and piloting special mechanisms and policies for the development of Da Nang, and one of the areas enjoying preferential policies is semiconductor chips.

“Thus, with special policies and high-quality human resources that have been or are being trained, and the city’s strong determination, Da Nang will succeed in developing the semiconductor industry and maintain its pioneering position.”, said Mr. Lam.

Readiness in terms of mechanisms, policies, infrastructure

Da Nang is located in the middle of the country with developed infrastructure, including transportation, international airports and urban projects. The city has been preparing land funds, concentrated information technology (IT) zones, software parks, high-tech zones for businesses to implement projects on semiconductor chips, AI. International fiber optic cable network, electricity and traffic infrastructure and logistics now fully meet the requirements of investors.

Da Nang has one hi-tech park and three concentrated IT parks recognized by the Prime Minister. It is expected that Da Nang Software Park No. 2 with a floor area of over 90,000m2, serving more than 6,000 employees, will be put into use by the end of 2024. At the same time, the city is preparing suitable land funds as well as investing in three new IT parks.

An important step for the city to be ready to welcome the investment wave, and in the semiconductor chip field in particular, is to establish DSAC under the Da Nang Department of Information and Communications and put into operation on January 26, 2024.

The center has 3 main functions: training and fostering semiconductor chip design and AI; supporting investment attraction in semiconductor chip and AI; linking and cooperating with domestic and foreign partners to promote research and incubate startups in the field of semiconductor chip design and AI.

DSAC is assessed by the Vietnamese Ministry of Information and Communications as the first centre in the country to organise activities to support investment, research, training and international cooperation in the field of microchip and AI.

On March 8, 2024, the Da Nang People's Committee issued Decision No. 460/QD-UBND to establish two groups to implement the project ‘Developing semiconductor chips and microchips in Da Nang’, namely Working Group and Consulting Group.

Accordingly, the Working Group is responsible for advising and assisting the Da Nang People's Committee in coordinating, developing and implementing the project; implementing solutions for developing the semiconductor chip industry; researching and proposing policies and strategies for developing semiconductor chips and microchips in the city.

The Consulting Group is in charge of assisting the Da Nang People’s Committee in providing advice and feedback on the project’s content and related policies and strategies; participating in the city’s conferences and seminars on developing semiconductor chips and microchips. Up to now, the content of this outstanding project is expected to be issued by the end of 2024.

In particular, on May 13, 2024, the Politburo issued Conclusion No. 79-KL/TW on continuing to implement Resolution No. 43-NQ/TW on building Da Nang by 2030, with a vision toward 2045. The semiconductor and AI industry is identified as one of the five important and breakthrough industries, creating a driving force for rapid and sustainable development for Da Nang in the coming time.

Immediately after that, Resolution No. 136/2024/QH15 dated June 26, 2024 of the National Assembly approved outstanding incentive policies for strategic investors and strategic partners in the field of microcircuits and AI such as corporate income tax exemption policy, personal income tax exemption; policies to support training costs and fostering in the semiconductor industry; policies to attract experts and scientists.

To promptly concretize Resolution No. 136/2024/QH15, the city is focusing on developing a resolution regulating policies to support the development of semiconductor and AI, contributing to quickly creating a favourable environment, strongly attracting investment and cooperation from domestic and foreign enterprises to the city, as well as developing high-quality human resources.

Mr. Nguyen Bao Anh, former Senior Director of Synopsys Viet Nam, Manager of the Vietnam Microchip Community Group, said that Da Nang is a bright spot in dynamism and rapid development of the semiconductor industry.

It can be seen that the city is urgently consulting experts and enterprises to develop projects and policies to support the development of microchip resources as well as attract investment, and likewise, many universities across the city have accelerated training in microchip design. These things demonstrate the great desire of the Da Nang government to develop the ‘billion dollar’ semiconductor microchip industry.

“I am working with my colleagues to build a foreign-invested microchip design company headquartered in Da Nang. This is very close to the city’s plans and policies in promoting investment in the microchip sector. I hope that Da Nang will build a diverse and dynamic microchip ecosystem, including many different steps in the microchip supply chain. This ecosystem not only has large corporations but also many small and medium-sized companies", Mr. Bao Anh expected.

Reporting by MAI QUE - Translating by A.THU