Central hub to build global semiconductor destination

A series of memorandums of Understanding (MoUs) in semiconductor cooperation are signed at the semiconductor forum, Semicon Day Đà Nẵng 2024. Đà Nẵng is designed as a global semiconductor centre. — VNS Photo Công Thành

ĐÀ NẴNG - The central city is to build innovative institutions and exceptional policy on the base of legal framework to create the most preferential conditions for strategic investors and businesses to bed their long-term projects in semiconductor and AI in the central city.

This vision was shared by the city’s Party Secretary, Nguyễn Văn Quảng at the first ever semiconductor forum, Semicon Day Đà Nẵng 2024.

“Special priorities will be offered to investors in semiconductor and AI industries in Đà Nẵng as the city has been assigned for building it into a global semiconductor and AI industries centre,” Quảng said.

“Đà Nẵng will be the first city in Việt Nam building a pilot municipal authority and free trade zone, so investors will benefit the best conditions in tax, land-rent, expert, training and import tax for equipment.”

Quảng also strongly committed that any special preferential policy is not only for strategic semiconductor manufacturers with revenue from $1 billion, but small and medium-sized enterprises are also invited.

He said Đà Nẵng will be speeding up the construction of manufacture and logistics functional areas in the free trade zone and the deep-sea Liên Chiểu Port, as well as an air cargo terminal offering space for semiconductor and AI investors.

Head of US Consulate General in HCM City, Susan Burns said the conference was a great example of the city’s potential and commitment to develop Việt Nam’s semiconductor ecosystem.

“The semiconductor industry is the foundation of the modern global economy, driving technological innovation and enabling the Fourth Industrial Revolution. The US and Việt Nam share a vision of harnessing the power of this vital industry to promote economic growth, technological innovation and sustainability,” she said.

“Đà Nẵng’s evolving semiconductor sector has captured global attention, thanks to its rapidly developing industrial base, strategic location and an increasingly skilled workforce. And with its emerging tech ecosystem, the city is well-positioned to be at the forefront of this growth, making this event today both timely and significant.”

An exhibition of semicondutor and robot products opens at the Đà Nẵng Semiconductor Forum. The event attracted more than 400 participants seeking cooperation in semiconductor and AI industries. VNS Photo Công Thành

“The US government is committed to supporting Việt Nam in addressing the challenges facing the semiconductor industry today, fostering collaboration between our public and private sectors and working closely with our Vietnamese counterparts to build a sustainable and innovative semiconductor ecosystem.”

Vice chairman of the city’s people’s committee, Hồ Kỳ Minh said Đà Nẵng plans to be one of three largest centres of semiconductor and AI industries in Việt Nam along with HCM City and Hà Nội.

He said the city needs to train 5,000 engineers, including 2,000 chip designers, by 2030 in order to supply manpower for the industries.

The city will introduce the Đà Nẵng Software Park No 2 (SP2) -- a centralised information technology (CIT) zone owned by the Government – which will provide working spaces for 6,000 IT and semiconductor employees.

General director of Marvell Việt Nam Lê Quang Đạm, said he only wished that a Vietnamese business would join the global semiconductor supply chains.

Trịnh Khắc Huề, general director of Qorvo Việt Nam Inc, said the company, which has 100 members in Việt Nam, has positively participated in chip design and manufacture.

He said the US-Việt Nam cooperation model would set an example for semiconductor and chip design – where experienced US experts could share knowledge and skills with Vietnamese hard-working engineers.

He said the cooperation would help improve competition, while also reducing production costs by exchanging technology knowledge.

Vice Minister of Information Technology and Communications, Bùi Hoàng Phương stressed that agreements between Vietnamese businesses and world leading groups would help build Việt Nam as a safe destination in semiconductor production.

He said Việt Nam is an attractive destination for associated industries, as the country is in a central location with 70 per cent of key global semiconductor manufacturers within three or four hours flying time.

Memorandums of Understanding (MoU) were signed among the city’s department of information technology and communication and partners including Synopsys International, Marvell Việt Nam, local investor Sovico, Viettel Group and FPT IS in semiconductor development.

The City’s Science and Technology department and Makara Capital Partners also agreed to work together in a start-up and innovation entity in Đà Nẵng.

An UAV is introduced at a pavilion in the semiconductor forum, Semicon Day Đà Nẵng 2024. Many investors are seeking opportunities in AI and semiconductor in Đà Nẵng

Đà Nẵng's semiconductor Research, Design Training & AI Centre (DSAC) and six universities in the city inked MoUs in research and training in semiconductor and AI.

Human resource supply deals were signed by Tecotec Group, K&H MFG company from Taiwan, LTD Material and six local universities.

Certificates were handed to the first 22 trained in microchip design in Đà Nẵng, while 17 other trainees were enrolled in the first sessions in Assembling, Testing and Packaging (ATP) by Arizona State University.

The Đà Nẵng-Singapore Innovation Space was launched in cooperation between Đà Nẵng City’s Science and Technology department and Quest Ventures, a top venture capital fund in Asia, during the Đà Nẵng Innovation Start-up Festival.