Vietnam to boost semiconductor development with US support

Minister of Planning and Investment Nguyen Chi Dzung (centre left), US Ambassador to Vietnam Marc Knapper (centre right) and other officials launched the Policy and Supply Chain Leadership Institute in Hanoi on Wednesday, which aims to increase Vietnams semiconductor capabilities. — VNS Photo Bao Hoa

These sessions, which take place as the United States and Vietnam celebrate one year since the signing of the Comprehensive Strategic Partnership in September 2023, are part of the International Technology Security & Innovation Fund (ITSI Fund), a key initiative of the U.S. CHIPS and Science Act designed to enhance semiconductor capabilities and supply chain resilience worldwide.

Organized by Arizona State University (ASU), the kick-off sessions will bring together key stakeholders, including leaders from the Ministry of Planning and Investment (MPI), Ministry of Information and Communications (MIC), Ministry of Education and Training (MOET), Ministry of Science and Technology (MOST), Ministry of Labor, Invalids and Social Affairs (MOLISA), the National Innovation Center (NIC), local government officials, ATP industry leaders, and academic representatives from top engineering and technology universities and vocational colleges, to identify Vietnam's strengths and challenges in the semiconductor sector and formulate action plans to enhance its capabilities.

Vietnam is one of eight strategic countries selected for this initiative, along with Costa Rica, Mexico, Panama, Indonesia, the Philippines, Kenya, and India all supported by the U.S. Department of State Bureau of Economic and Business Affairs. The Department of State awarded ASU $13.8 million to drive talent development and formulate public policy recommendations across these nations.

“This initiative is a significant step in strengthening Vietnam's semiconductor industry and fostering collaboration between our country and the United States,” said Minister Nguyen Chi Dzung, Ministry of Planning and Investment “By investing in workforce development and public policy, we aim to solidify Vietnam’s position as a vital player in the global semiconductor supply chain.”

The workshops are designed to develop a skilled workforce and create a supportive policy environment to attract investment and innovation in the semiconductor sector. Through this initiative, ASU is also partnering with educational institutions so that professors and students from those institutions can receive mentoring and access to coursework to support their development. These efforts are in alignment with the ITSI Fund's goals to diversify and expand global semiconductor Assembly, Testing, and Packaging (ATP) capabilities, ensuring a robust and resilient supply chain.

As part of this initiative, ASU has launched the portal https://itsi-skillsaccelerator.org, offering free courses to students interested in the semiconductor industry. The platform also provides opportunities for teachers to receive certifications in semiconductor technology, acting as a hub for individuals and institutions eager to engage with this critical field.

U.S. Ambassador to Vietnam Marc Knapper highlighted the program’s importance in connecting U.S. and Vietnamese institutions, saying, “The United States is proud to invest in Vietnam’s future through workforce development programs that create lasting partnership. Together, we are building institutional ties that will shape the semiconductor industry for years to come.”

Minister of Investment and Planning Nguyen Chi Dzung speaks at the launch ceremony. — Photo courtesy of ITSI Program

Minister Nguyen Chi Dzung, expressed his support, stating, “The workshops are a strong affirmation of Vietnam's determination to seize opportunities and become an important bridge in the global value chain of the semiconductor industry. By promoting cooperation and investing in human resources, we are creating a promising future for Vietnam's semiconductor industry.”

ITSI Senior Coordinator Virginia Kent emphasized the broader significance of these initiatives: “This partnership extends beyond technological advancements; it represents a shared commitment to fostering sustainable development and prosperity through innovation. Together, we can ensure that the benefits of technological progress are widely distributed, strengthening our economies and our shared democratic values.”

Mr. Jeffrey Goss, Principal Investigator of the ITSI Program at ASU, remarked, “This collaboration opens up tremendous opportunities for Vietnamese students and professionals to gain cutting-edge skills in semiconductor technology. ASU is honored to support Vietnam's journey toward becoming a key player in this transformative industry.”

These efforts align with the broader goals of Vietnam to position the country at the forefront of technology and innovation. By nurturing talent and enhancing policy frameworks, Vietnam is set to attract new investments and partnerships, contributing to the global semiconductor ecosystem's resilience and growth.

The ceremony launching the Policy and Supply Chain Leadership Institute supported by the International Technology Security & Innovation Fund

About ITSI and Diversifying Semiconductor Supply Chains program: The U.S. CHIPS Act of 2022 established the ITSI Fund to strengthen semiconductor supply chains crucial for U.S. industry. Arizona State University, selected by the U.S. Department of State’s Bureau of Economic and Business Affairs, will lead efforts to enhance semiconductor assembly, testing, and packaging (ATP) in key partner countries across the Americas and Indo-Pacific within the Diversifying Semiconductor Supply Chains program. This U.S.-government funded initiative aims to improve business environments, expand the skilled workforce, and refine regulatory frameworks to build a resilient and diverse global ATP supply chain.

About Arizona State University (ASU): Arizona State University is a leading U.S. institution committed to advancing innovation, research, and education on a global scale. As a partner in the ITSI initiative, ASU is responsible for designing and implementing programs to develop talent and provide policy recommendations in the semiconductor sector. ASU collaborates with international stakeholders to address critical challenges and opportunities in the global semiconductor industry.

About the National Innovation Center (NIC): The National Innovation Center (NIC), operating under the Ministry of Planning and Investment (MPI) of Vietnam, is dedicated to fostering the country's innovation and startup ecosystem. NIC supports innovative businesses and plays a crucial role in driving Vietnam's economic development. By facilitating collaboration among government, research institutes, universities, and businesses, NIC is pivotal in strengthening Vietnam's technological capacity and advancing its integration into the global semiconductor supply chain.

About the Ministry of Planning and Investment (MPI): The Ministry of Planning and Investment (MPI) is a key government body in Vietnam responsible for national economic strategy, planning, and investment policies. MPI is instrumental in driving Vietnam's economic transformation and fostering sustainable development. Through its leadership in the ITSI initiative, MPI is working to enhance Vietnam's role in the global semiconductor industry by aligning policy frameworks with international standards and attracting investment in advanced technology sectors.