Semiconductors play an important role in the overall development of a country, enabling advances in a multitude of areas: job creation, technology development, exports, and others.

Da Nang Party Committee Secretary Nguyen Van Quang (middle) visits and works with leaders of the Intel Group in the US. Photo: P.V

Semiconductor industry in the era of digital transformation

The fundamental nature of the semiconductor industry is multiplied many times over in the era of digital transformation, in which microchips are the core components of digital products and services.

The 13^th National Party Congress's resolution sets the goals of turning Viet Nam into a developing country with a modern industry and high middle income by 2030; and into a developed, high-income country by 2045. Therefore, the Government, ministries, departments and agencies have been developing many policies and strategies to concretise each step of achieving the goals. One of those strategies is to promote the development of the electronics and semiconductor industries.

All national government, and provinces and cities nationwide, move according to the current news of electronics and semiconductor circuits, but perhaps Da Nang is the most outstanding locality as it leaves a strong mark at home and abroad.

In particular, in August 2023, the People's Committee of Da Nang issued a plan to develop the information technology (IT) industry in the city until 2030. Under the plan, the city prioritises developing the IC design and manufacturing industry.

As for the IT industrial infrastructure, Da Nang currently has a High-Tech Park, 6 industrial and export processing parks, and 3 IT and software parks.

The city has completed the construction of the Software Park No. 2 and continued to expand the Da Nang Centralised IT Park phase 2.

It has laid an emphasis on attracting investment in the Hoa Xuan Creative Space, as well as supporting the implementation of investment procedures to build the Viettel High-tech Building and the Da Nang Bay IT Park.

Foreign companies involving IC design, including Synopsys, Uniquify, Savarti, Renesas, Synapse, Fpt Semi, and Sannei Hytechs, have opened representative offices and factories in the city, with about 550 engineers in total, ranking second only after Ho Chi Minh City.

Public-private cooperation and human resource training

On October 10, 2023, Da Nang hosted a seminar to seek solutions to develop human resources in the local semiconductor industry. The event attracted the participation of many businesses specialising in the semiconductor industry, training facilities and managers.

Through the seminar, it can be seen that universities have soon realised the important role of semiconductor, but this field in Viet Nam has not yet developed strongly, so they have built integrated and practical training programmes. The purpose is to help graduates quickly learn more about IC knowledge. Therefore, building an accelerated supplementary training programme, and a training programme for engineers specialised in this field, will have many advantages.

The most prominent is the assessment and assertion of entrepreneurs: "Da Nang is an investment address for IC design companies, and has great potential for human resources, appropriate infrastructure and policies to support businesses and startups in IC design".

Mr. Trinh Thanh Lam, Sales Director of Synopsys South Asia, said that the establishment of a human resource training centre for semiconductor in Da Nang was completely appropriate.

In addition, a seminar entitled ‘Developing high-quality human resources for the semiconductor industry: Joining forces and being ready for the development of regions and the country’ was held in the city in October 2023.

In his remarks at the event, municipal Party Committee Secretary Nguyen Van Quang affirmed that the city focused on developing the IT, and electronics - telecommunications industries associated with the digital economy.

The city is committed to being proactive and ready to create the most favourable conditions for training institutions, businesses, and domestic and foreign investors to develop cooperation and effectively operate under many different models in the city.

Notably, the Da Nang University of Science and Technology has promoted the opening of a training major for Microelectronic Circuit Design Engineer. It has cooperated with Tresemi - a non-profit organisation consisting of experts and researchers working at leading semiconductor companies in the USA and Viet Nam to open training courses about semiconductor for students. Each course is expected to have 30 students and last about 12-15 weeks.

It can be said that this is a model of "speed training centre" that has been deployed in other countries successfully.

After completing the course and achieving good results, students will be granted a globally valid certificate by Keysight Technologies and have the opportunity to work for major technology companies such as Qualcomm Technologies, Samsung, OPPO, Xiaomi, MediaTek, UNISOC (Spreadtrum), Motorola Mobility, Viettel, VNPT, Mobifone, Vinfast, and FDI enterprises.

Similarly, the University of Technical Education has soon opened the Department of Digital Technology, as well as worked with the Nam Long Group to build a digital transformation practice laboratory.

The Viet Nam-Korea University of Information and Communications Technology has opened a specialised semiconductor training programme; and built a research and circuit design lab from a project funded by KOICA Korea.

The Duy Tan University has offered training majors in related fields and has been focusing on training human resources for the semiconductor industry by setting up cooperation relations with US universities.

Manufacturing chips and assembling electronic components at the Trung Nam EMS JSC. Photo: Dang Khiem

A pioneer and the government’s commitment

In November 2023, a group of Da Nang’s officials, led by Party Committee Secretary Nguyen Van Quang, visited and worked with large tech-companies in the US, including Intel, Nvidia, Synopsys and Marvell.

This proves that Da Nang is a pioneer in the strategy of developing semiconductor technology in Viet Nam.

Secretary Nguyen Van Quang said that Da Nang boasted its strengths in the strategy of developing the semiconductor industry, especially the strategic geographical location connecting seamlessly with the regions; and synchronous and modern transport and IT infrastructure; young, abundant, high-quality human resources; peaceful living environment; and active support from the local government.

Therefore, the city is concentrated on promoting chip and microchip design as well as gradually developing chip testing and packaging, and joining the global supply chain.

In addition to the general ideas, the city Party Chief Quang asked for detail support  from each company where the city delegation visited.

For instance, Mr. Quang asked for help from the Nvidia Company in terms of preferential mechanisms and policies, technology transfer, human resource training, infrastructure investment and access to AI solutions.

Meanwhile, during his visit to the Intel Group, he proposed the company to build a second factory in Viet Nam, and implement the ‘AI for Future’ programme, as well as construct the high performance computing centre and a laboratory to serve the assembly and testing of microchips and semiconductors in the city.

Aside from content in the signed Memorandum of Understanding, the city emphasised the need for the Synopsys Group to support the development of international certification programmes in the field of microchips and semiconductors, create the close links with IC Design Engineer Certifications organisation, and support copyright to use advanced tools for chip design and testing in Da Nang.

At the Marvell, the city suggested that the company choose Da Nang to open an office after Ho Chi Minh City.

In 2023, Da Nang was awarded the Seoul Smart City Prize in the category of the Human Centricity bronze at the World Cities Summit Mayors Forum in Seoul, the Republic of Korea, for member cities of the World Smart Sustainable Cities Organisation (WeGO). Also, it was honoured with the "Viet Nam Smart City 2023" Award for the fourth consecutive time.

Besides, the city received other awards such as smart administration and management city; smart public services; smart, green, clean environmental management city; and attractive city for innovative startups.

It can be affirmed that Da Nang is an ideal investment destination for semiconductor industry.

All of the aforementioned lessons from around the world show that investments in education, research and development, public-private partnerships, and support systems are important factors in the successful development of a powerful and competitive semiconductor in the global market.

With the abovementioned steps of implementation, and achieved results, especially the business trip to the headquarters of semiconductor enterprises in the US by the city's highest-ranking leaders, it can be affirmed that Da Nang has soon put its name on the world's semiconductor map.

​Reporting by Prof. TRAN VAN NAM - Translating by M.DUNG, V.DUNG