HCM City: Strong leap into semiconductor industry

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Vietnam is said to have favorable conditions to develop a semiconductor industry ecosystem and become an essential part of the global semiconductor supply chain. The Party and the State are formulating breakthrough mechanisms and policies to promote the growth of this industry.

The semiconductor industry is likened to “a grain of rice” as it sustains all other sectors in the technological era, serving as the key to future digital technologies. The semiconductor industry plays an increasingly vital role in the world economy, with the global market size exceeding US$520 billion in 2023 and continuing to grow rapidly.

To gradually realize this goal, HCM City recently organized the 2024 International Exhibition for Integrated Circuit and Semiconductor Industry. The event aimed to attract businesses and organizations operating in the semiconductor sector in particular and high-tech industries in general from the city and neighboring provinces to establish a high-tech ecosystem.

The exhibition also aimed to provide businesses with opportunities to build partnerships and joint ventures through cooperation with domestic and foreign partners, thereby promoting the development of high-tech industries in HCM City and increasing trade promotion opportunities for Vietnamese enterprises.

The exhibition not only focused on advanced semiconductor technologies, but also expanded into related fields, such as optoelectronics, robotics, smart factories, and AI applications in manufacturing. This event is part of Vietnam’s semiconductor industry development strategy for the 2024-2030 period, aiming to attract investment, develop human resources, and build infrastructure to support digital transformation and reduce dependence on foreign technologies.

According to the leaders of the municipal People’s Committee, HCM City is focusing on developing high-tech industries, innovation, regional connectivity, and transforming production towards automation, and using green and clean energy for sustainable development. The city is also implementing new investment attraction policies to encourage the shift from traditional manufacturing models to smart factories.

At the same time, the city is implementing policies offering 100-percent interest rate support and funding assistance amounting to VND200 billion. These policies enable businesses to invest in innovation and shift to smart manufacturing in order to keep pace with current economic development trends.

“Recently, HCM City has provided favorable conditions for industrial enterprises to connect with multinational corporations to receive technology transfer and production management experience. This will help domestic enterprises gradually modernize production and prepare for their participation in global supply chains. The city will accompany businesses in technological innovation and production expansion,” affirmed the leaders of HCM City.

The Ho Chi Minh City People’s Committee recently approved a development program for the semiconductor industry in the Saigon Hi-tech Park for the 2025-2030 period. The program’s overarching goal is to develop the city’s semiconductor industry, with the Saigon Hi-tech Park serving as the nucleus, capable of participating in high-value-added stages of the global semiconductor value chain. By 2030, the Saigon Hi-tech Park aims to become a national hub for research and development in the semiconductor industry, boasting a robust semiconductor ecosystem.

To realize this goal, the city plans to establish a Center of Excellence for semiconductors, MEMS (Micro-Electro-Mechanical Systems) sensors, and the Ho Chi Minh City Institute of Advanced Technology and Innovation. These two entities will work effectively to create a common platform for harnessing and applying research results to develop high-tech commercial products. This initiative will leverage the strengths of the “three pillars” (government, educational units, and enterprises) to contribute to the growth of HCM City’s semiconductor industry.

The city aims to master technologies from the design and fabrication of MEMS-based environmental sensors to build systems for air quality monitoring based on the Internet of Things (IoT) and artificial intelligence. These systems will serve environmental management in the Saigon Hi-tech Park. Research units will focus on successfully designing and producing power semiconductor components, such as MOSFETs or Transistors, for use in power control applications. This will lay the foundation for establishing standard manufacturing processes and parameters, which will be essential for the future design and manufacture of complex semiconductor components.