Support rises in semiconductor chip development in Vietnam

Back in 2020, the Ministry of Science and Technology (MoST) submitted for promulgation the list of high technologies prioritised for funding and development, as well as a list of high-tech products encouraged for development, in which integrated electronic circuit manufacturing technology was among them, and semiconductor materials and integrated electronic circuits are high-tech items are among the encouraged products.

In recent times, to support research and development (R&D) activities in microchips, the MoST has approved a number of sci-tech tasks in national programmes. Through pilot production tasks, Vietnam’s research team and technical staff have gradually improved their capacity and mastered a number of technologies in the microchip industry.

The R&D ecosystem in integrated circuits has gradually been formed. A number of organisations and businesses have invested in R&D of semiconductor chip technology such as Viettel R&D Institute, and the Circuit Design Research and Training Centre.

Training high-quality human resources in microchips has also received attention from Vietnamese higher education institutions, and some have linked with businesses to coordinate chip research.

However, according to assessments, Vietnam’s semiconductor industry has a low localisation rate, while R&D activities are not synchronised and high-quality human resources are still limited. Therefore, efforts are needed to reach cooperation agreements to support technology transfer with technology powers, thereby moving towards complete mastering important stages in the chip production process.

In the coming time, the ministry will increase support for basic research in semiconductors through the National Foundation for Science and Technology Development, basic research initiatives in natural sciences, and prioritise resources to implement the National Product Programme, including integrated electronic circuits.

The ministry will strengthen coordination with ministries, businesses, and large corporations such as Viettel, VNPT, FPT, and CMC to evaluate the stages in the chip production chain that Vietnam has the advantage and ability to succeed in, and then advise on prioritising appropriate resources and policies.

The ministry will also support strengthening capacity for a number of Vietnamese businesses to participate in the chip production chain; form R&D and innovation centres related to semiconductor materials and chip design; continue to complete mechanisms to attract high-quality human resources in semiconductors and chip design; and promote development of chip research and design facilities.

In addition, the ministry will also develop policies and support equipment for measuring and testing semiconductor chip products in line with the highest standards, thus contributing to shortening the time of production and product output.

In the spirit of taking businesses as the centre of innovation and technology application, the MoST has approved state-level key sci-tech and national programmes on national products, high-tech development, and national tech and innovation.

The goal of these schemes is to focus on investment to increase the capacity of businesses, boost tech absorption among businesses, and form Vietnamese brands that are competitive in terms of novelty, quality, and price. This is the government’s support in helping businesses shorten time and save resources to master technology in priority industries.

In 2016-2020, many technological solutions and processes were immediately applied and widely replicated. Issues of interest in world-class research include the application of AI, the Internet of Things, and cloud computing. Advanced materials are also being researched.

So far, the MoST has issued and submitted to competent authorities the National Science and Technology Programme for this decade according to the orientation of R&D and mastery of both foundation and core technology, for development of industries linked to the roadmap in accordance with the content of the Science, Technology, and Innovation Development Strategy towards 2030.

In the coming time, the ministry will improve policies to ensure mandatory requirements as well as encourage connection between programmes and types; and encourage connection between sci-tech organisations, businesses, and regions in implementing related tasks.

It also increases ordering of such tasks from the state, especially ministries and agencies, for the development strategies of key economic sectors. The organisation identifies core scientific issues/fields that need priority, and products with market potential to order through state-level sci-tech initiatives.

In addition, it builds a mechanism to increase the participation and contribution of businesses in implementing such tasks that directly serve the specific needs of businesses.nBy Huynh Thanh Dat

Minister of Science and Technology

In recent times, Vietnam has completed the legal corridor to create conditions prioritising investment and development of semiconductor chips. The Law on Investment and the Law on Corporate Income Tax have added special incentives for high-tech and large-scale projects, including chip production ones.

Back in 2020, the Ministry of Science and Technology (MoST) submitted for promulgation the list of high technologies prioritised for funding and development, as well as a list of high-tech products encouraged for development, in which integrated electronic circuit manufacturing technology was among them, and semiconductor materials and integrated electronic circuits are high-tech items are among the encouraged products.

In recent times, to support research and development (R&D) activities in microchips, the MoST has approved a number of sci-tech tasks in national programmes. Through pilot production tasks, Vietnam’s research team and technical staff have gradually improved their capacity and mastered a number of technologies in the microchip industry.

The R&D ecosystem in integrated circuits has gradually been formed. A number of organisations and businesses have invested in R&D of semiconductor chip technology such as Viettel R&D Institute, and the Circuit Design Research and Training Centre.

Training high-quality human resources in microchips has also received attention from Vietnamese higher education institutions, and some have linked with businesses to coordinate chip research.

However, according to assessments, Vietnam’s semiconductor industry has a low localisation rate, while R&D activities are not synchronised and high-quality human resources are still limited. Therefore, efforts are needed to reach cooperation agreements to support technology transfer with technology powers, thereby moving towards complete mastering important stages in the chip production process.

In the coming time, the ministry will increase support for basic research in semiconductors through the National Foundation for Science and Technology Development, basic research initiatives in natural sciences, and prioritise resources to implement the National Product Programme, including integrated electronic circuits.

The ministry will strengthen coordination with ministries, businesses, and large corporations such as Viettel, VNPT, FPT, and CMC to evaluate the stages in the chip production chain that Vietnam has the advantage and ability to succeed in, and then advise on prioritising appropriate resources and policies.

The ministry will also support strengthening capacity for a number of Vietnamese businesses to participate in the chip production chain; form R&D and innovation centres related to semiconductor materials and chip design; continue to complete mechanisms to attract high-quality human resources in semiconductors and chip design; and promote development of chip research and design facilities.

In addition, the ministry will also develop policies and support equipment for measuring and testing semiconductor chip products in line with the highest standards, thus contributing to shortening the time of production and product output.

In the spirit of taking businesses as the centre of innovation and technology application, the MoST has approved state-level key sci-tech and national programmes on national products, high-tech development, and national tech and innovation.

The goal of these schemes is to focus on investment to increase the capacity of businesses, boost tech absorption among businesses, and form Vietnamese brands that are competitive in terms of novelty, quality, and price. This is the government’s support in helping businesses shorten time and save resources to master technology in priority industries.

In 2016-2020, many technological solutions and processes were immediately applied and widely replicated. Issues of interest in world-class research include the application of AI, the Internet of Things, and cloud computing. Advanced materials are also being researched.

So far, the MoST has issued and submitted to competent authorities the National Science and Technology Programme for this decade according to the orientation of R&D and mastery of both foundation and core technology, for development of industries linked to the roadmap in accordance with the content of the Science, Technology, and Innovation Development Strategy towards 2030.

In the coming time, the ministry will improve policies to ensure mandatory requirements as well as encourage connection between programmes and types; and encourage connection between sci-tech organisations, businesses, and regions in implementing related tasks.

It also increases ordering of such tasks from the state, especially ministries and agencies, for the development strategies of key economic sectors. The organisation identifies core scientific issues/fields that need priority, and products with market potential to order through state-level sci-tech initiatives.

In addition, it builds a mechanism to increase the participation and contribution of businesses in implementing such tasks that directly serve the specific needs of businesses.

During VinFuture Prize 2023, Dr. Sadasivan Shankar, research technology manager at SLAC National Laboratory and Adjunct Professor in Stanford Materials Science and Engineering, spoke with VIR’s Tuan Minh about his insights into Vietnam’s chances in the semiconductor industry.

Vietnam will look to build on its semiconductor diplomacy with the formulation of a strategy on developing the much-needed products.

Vietnam is hoping to emerge as a top market for semiconductor production. Luong Van Nghiep, deputy director of Bac Giang Department of Planning and Investment, told VIR’s Minh Oanh about the northern province’s potential and its strategies to draw in foreign investors in the sector.

As Vietnam and the US enter a new phase of economic relations, American companies are preparing to offer an expansion in investments.

The United States is placing a special focus on supporting Vietnam in semiconductor development with a new cooperation framework, with growing interest from American investors.