Vietnam participates progressively more in chip production stages.

DNHN - Approximately 50 chip design companies are currently operating in Vietnam, with a total workforce of over 5,000 Vietnamese engineers and an upward trend.

Illustration
Illustration.

Advances in semiconductor component technology

FPT Corporation reported to the Prime Minister in March 2022 on the formation of FPT Semiconductor Joint Stock Company (FPT Semiconductor). This contributes to the realization of the semiconductor dream of multiple generations of Vietnamese from 1979 to the present.

In September 2022, FPT Semiconductor, a subsidiary of FPT Corporation that designs and manufactures microchips, released the first line of microchips utilized in Internet of Things (IoT) medical devices. Vietnamese intelligence's dream of manufacturing semiconductor components is realized.

Chip from Vietnam is still a foreign concept not only internationally, but also within the country itself. However, FPT Semiconductor has asserted that Vietnamese people are capable of manufacturing components for sale when it launches the first line of microchips used in Internet of Things (IoT) products for the medical industry. Vietnamese wisdom guides.

Engineers at FPT Semiconductor design and structure the line of integrated semiconductor chips (IC - Integrated Circuit) to serve specific industries and products. Vietnam transfers the completed design to a factory in South Korea for production and packaging.

The enterprise's first customer and current strategic partner collaborated to distribute FPT Semiconductor's chip products in Australia, Taiwan, and China. FPT Semiconductor focuses on deploying and supplying "Make in Vietnam" chips to domestic corporations to develop sustainably and contribute to improving the production supply chain between 2023 and 2025.

According to Mr. Nguyen Vinh Quang, Director of FPT Semiconductor, the company designs and manufactures three lines of source chips in 2022 and receives its first contract to supply 25 million chips to partners in 2024 and 2025.

"FPT is placing a 2 million-chip order for a Japanese partner." It is anticipated that FPT will have seven new chip lines in 2023. Mr. Nguyen Vinh Quang stated that FPT Semiconductor will continue to design and manufacture IoT platform chips for smart device applications and IoT chips for agriculture, forestry, and seafood, beginning in early 2024.

In October 2019, Viettel Hi-tech Industry Corporation announced that it is collaborating with numerous US, South Korean, and Indian partners on 5G chipsets, hardware, and software.

Vietnam's history has never produced a chip from beginning to end. When we say we will produce chipsets, many individuals are skeptical. However, after only three years, Viettel has developed a chip, according to a company representative.

Ms. Bich Yen, a specialist in microchips, remarked, "My impression is that Vietnam is very enthusiastic and committed to chip production." How can we unite Vietnamese at home and abroad to make this a reality? Universities and businesses must collaborate more closely to train personnel, conduct research, and bring these devices to market.

"The decision to manufacture chips in Vietnam was made at the right time, when the global shortage of chips coincided with Vietnam's implementation of digital transformation, including the transition to digital government, digital economy, and digital economy. Dr. Majo George, Faculty of Business and Administration, RMIT University, stated: "Digital society."

Vietnam will have the chance to develop or acquire the most cutting-edge technological know-how if it enters the field of chip manufacturing. This move may be difficult, but it will propel Vietnam to become a regional manufacturing powerhouse in the future.

The first microchip wafer sample of FPT Semiconductor.
The first microchip wafer sample of FPT Semiconductor..

Vietnam may consider self-manufacturing chips after 2030.

Mr. Nguyen Thien Nghia, Deputy Director of the Department of Information Technology Industry (Ministry of Information and Communications), stated recently in response to media questions regarding the issue of promoting the development of chip production in Vietnam that all stages in the production of semiconductor products, including design, processing, packaging, equipment, and materials, are highly specialized and competent. Clear separation.

This means that the entire manufacturing process is carried out by a handful of industry-leading technology companies. Joining this production chain requires a market, a substantial technological investment, and geopolitical relations.

"Vietnam's semiconductor chip industry is evaluated primarily based on its development potential, rather than its leadership position. Intel is currently performing the packaging stage of chip production in Vietnam. This is the final stage of chip production. Simultaneously, Samsung and Amkor are investing in a variety of projects, according to Mr. Nguyen Thien Nghia.

Recently, Mr. Kim Huat Ooi, Vice President and General Director of Intel Products Vietnam stated that the majority of materials had to be imported when Intel first arrived in Vietnam. There are currently over 200 local suppliers working with the factory. This is a crucial premise for supporting a closed chip autonomy process.

"It is commendable that the Vietnamese government and businesses have the ambition to become self-sufficient in chip sources. Some companies have developed excellent microcontrollers for particular applications. Vietnam will have a great opportunity to produce more chips in the future, he said.

In addition to Intel, Samsung, and Amkor, several major chipmakers have established factories in Vietnam, creating an open semiconductor supply chain. Several Vietnamese technology companies, including FPT and Viettel, are investing in the semiconductor industry to export tens of millions of 'Made in Vietnam' chips around the globe. In April, Prime Minister Pham Minh Chinh tasked the Ministry of Planning and Investment with developing a plan for the production of electronic chips.

Nguyen Thien Nghia disclosed that there are approximately 50 chip design companies in Vietnam employing a total of more than 5,000 Vietnamese engineers. and is rising in popularity. The development of a supporting business ecosystem and a team of chip designers and electronic engineers will aid Vietnam's gradual ascent up the value chain for semiconductor chips, as well as its increased participation in each stage. According to international chip associations, Vietnam will be able to manufacture its chips by 2030 if the current development trend continues.

"The Government has assigned the Ministry of Information and Communications the primary responsibility for formulating a strategy for the development of the microchip industry in Vietnam." The drafting committee is comprised of ministries and sectors such as the Ministry of Planning and Investment, the Ministry of Science and Technology, and the Ministry of Industry and Trade, as well as large corporations, corporations, experts, and associations. Mr. Nguyen Thien Nghie said that he would assess the current situation in Vietnam and around the world, analyze potentials, and analyze development trends to make suitable proposals for the Vietnamese microchip industry.

Thu Mai (t/h)

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