In 2024, Da Nang recorded some encouraging achievements to create a foundation for the development of semiconductor chips and artificial intelligence (AI). The city focuses on developing in three directions: infrastructure, policies and human resource development.

Da Nang successfully organised a conference to promote investment in semiconductor field in 2024. Photo: MAI QUE

Many positive results

A positive signal about infrastructure is that Da Nang has overcome difficulties to put into operation the Da Nang Software Park No. 2 according to Decision No. 1238/QD-TTg dated October 22, 2024 of the Prime Minister. As approved by the Prime Minister on October 22, the expansion part is the Da Nang Software Park No. 2, which covers a total land area of 28,573 m2 in Thuan Phuoc Ward, Hai Chau District, Da Nang. Its investor is the Da Nang People’s Committee.

Under the decision, enterprises which invest in IT projects in the Da Nang Software Park No. 2 will be eligible to preferential policies and other incentives applied to concentrated IT zones, as regulated by the national government.

Also in October, the Da Nang People’s Council approved the adjustment of the investment policy for the Da Nang Software Park No. 2 project (Phase 1) with a total cost of more than VND414 billion to complete 3 synchronous buildings (20-storey ICT, 8-storey ICT1 and 8-storey ICT2). Thus, the total investment of the project is VND1,400 billion. It is expected that in January 2025, the ICT 1 building will be inaugurated.

As reported by Mr. Nguyen Quang Thanh, the Director of the Da Nang Department of Information and Communications (MIC), the city has established the Da Nang Semiconductor and Artificial Intelligence Center for Research and Training (DSAC) under the Da Nang Department of Information and Communications and put it into operation on January 26, 2024.

This is the first of its kind in Viet Nam to organise investment support activities, research, training and international cooperation in the field of microchips and AI. In October 2024, DSAC was honoured as the solution for ‘Developing a semiconductor ecosystem for the future’ at the Viet Nam Innovation Challenge 2024.

When it comes to policies, the 21^st session of the 10th Da Nang People's Council passed three resolutions regulating policies for developing semiconductor chips and AI, thereby concretising Resolution No. 136/2024/QH15 of the National Assembly on organising urban government and piloting a number of specific mechanisms and policies for the city’s development.

With regard to human resources, the city successfully organised the launching ceremony of the training programme and opened a training class for lecturers in the field of microchip design on March 26, 2024.

To date, four universities have officially opened microchip engineering training majors and enrolled nearly 300 students in total; opened three training classes for 41 students and 59 lecturers to convert their majors from the microchip engineering to microchip design.

The city organised training for 17 lecturers involved in the test packaging programme organised by Arizona State University (the U.S.); coordinated with NVIDIA to grant AI ambassador certificates to seven lecturers from universities in Da Nang.

A prominent semiconductor event last year was ‘Da Nang Semiconductor Day 2024’. This event marked a new milestone in the city’s development journey. Within the framework of the event, many agreements and memorandums of understanding on cooperation between Da Nang and partners, businesses, and investors were signed.

As a result, by the end of 2024, the world’s leading semiconductor and microchip design enterprises such as Synopsys, Marvell and Renesas have made their presence in the city.

Da Nang now houses five more chip design companies investing, bringing the total number of chip design enterprises to 13. Recently, Da Nang has had four startups listed in the top 10 innovative startups in the field of semiconductor chips and AI organised by Qualcomm, namely XB Technology Co., Ltd., Alpha Asimov Robotics Co., Ltd., Vox Cool Co., Ltd., VAS High-Tech Solutions JSC (Delta X).
Continuing to develop in 3 directions

In early October 2024, Mixel Viet Nam Co., Ltd. was established in Da Nang. This is a member of Mixel Group (the U.S.), the world’s leading supplier of mixed-circuit IP cores. Mixel's activities ‘span’ many fields: AI and machine learning, mobile devices, cameras, display technology, virtual reality and smart cars.

Mr. Nguyen Bao Anh, the company's director, said: “Our desire is to bring many advanced technologies in the world to Viet Nam, and Da Nang in particular. This will create more opportunities for students to be trained systematically, to try their hand at high technology and to have direct access to customers.

Besides, I also want to build a team of highly qualified and experienced Vietnamese experts, creating a premise for high-end products from Viet Nam in the future. The establishment of a new semiconductor company in Da Nang really significantly contributes to affirming that the city is changing strongly, welcoming the wave of technology shift in the world, especially semiconductors”.

Mr. Bao Anh also suggested that, in addition to attracting large corporations, the city needs to support small and medium-sized enterprises more. These entities will create a sustainable technology ecosystem for the future. In terms of technology, it is expected that there will soon be investment projects for microchip manufacturing, advanced packaging, traditional packaging and testing. In parallel with attracting foreign investment, the city should also invest in building research and training centers to develop internal capacity.

According to Mr. Nguyen Quang Thanh, the roadmap for developing the city’s semiconductor and AI industry comprises of two phases. Specifically, in the 2024-2027 period, focus will be on training human resources associated with attracting foreign investment in the field of semiconductor and AI design, preparing resources for more development strides in the next phase.

In the 2027 - 2030 period, priority will be given to the development of domestic enterprises and startups, and attracting investment in semiconductor design to promote investment attraction in the packaging and testing sectors. In 2025, the city will put into use three laboratories, namely two labs for training in microchip design and one lab for training in AI in the Da Nang Software Park No. 2.

The city will deploy investment to complete Phase 2 of the Da Nang Software Park No. 2 to put the ICT2 and ICT3 buildings into use.

With regard to mechanisms and policies, the city will develop a plan to implement the project on developing semiconductor microchips and AI in the city and resolutions. As for human resource training, the city will continue to deploy training courses, foster domestic and foreign source lecturers related to microchip design and packaging testing on the basis of cooperation with Synopsys and the Arizona State University in the U.S.

Reporting by MAI QUE - Translating by A.THU