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Catching the Wave of Investment in the Semiconductor Industry

(News Portal – Dong Nai) - Vietnam has a golden opportunity to delve deeper into the global semiconductor supply chain if there is a suitable long-term strategic plan. The province is selectively attracting investment, aiming at industries with high scientific and technological content, and the semiconductor industry is one of the key targets.
The locality is proactively attracting investment, preparing resources to meet future demands from partners. 

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​Lac Hong University is focusing on preparing to train human resources for the semiconductor industry. 

Arising Opportunities

Vietnam is gaining more attention from major technology corporations globally. Notable electronics and semiconductor giants like Intel, Samsung, Synopsys, Qualcomm, Infineon, Amkor, among others, have already established a presence and have plans to expand their investments in Vietnam. Since the end of 2023, leading global companies in the semiconductor sector such as Nvidia and members of the U.S. Semiconductor Industry Association (Intel, Qualcomm, Ampere, ARM, Synopsys, Infineon) have met with the Ministry of Planning and Investment to seek investment opportunities and expand their market operations in Vietnam.

Dong Nai currently hosts numerous industrial parks and technology companies, with a large-scale workforce. Notably, the Long Thanh International Airport, once operational, will not only be a hub for international aviation but will also boost logistics, industrial commerce, and support industries. It will serve as a transit hub for data connection, fostering the development of high-tech industries. The province sees the development of the semiconductor industry as a chance for unprecedented socio-economic growth. Therefore, the development of infrastructure, including both hard and soft infrastructure, to meet the needs of enterprises is crucial.

In October 2023, Coherent Group (U.S.) engaged with the province to propose projects in optics and semiconductors, as well as assess the labor supply for electronics and semiconductor projects. Rapidly, in April 2024, two of this group's projects in Nhon Trach district's industrial zones were granted investment registration certificates by Dong Nai. Another advanced optics, metrology, and semiconductor components project by this group is being planned. The initial registered investment capital for the three projects is $750 million, divided into specific phases, with projected production value exceeding $1.2 billion annually once operational.

According to Member of the Central Party Committee and Dong Nai Provincial Party Secretary Nguyen Hong Linh, the opportunity for attracting traditional industrial sectors from foreign partners in Dong Nai is diminishing. Future technology export products from Dong Nai are expected to be transported by air. The province's current requirement for investment projects is that they must possess high technology, large value, and minimal production material occupancy, making selective investment a frequent and urgent issue.

Preparing for the Future

To accommodate the investment shift and attract high-tech industries, including the semiconductor industry, preparing human resources is crucial.

According to Vice Chairwoman of the Provincial People's Committee Nguyen Thi Hoang, Dong Nai emphasizes building closer relationships between training institutions and businesses. For many years, the province has strengthened cooperation and connection with countries successful in vocational training development, such as Germany, Japan, and South Korea. Dong Nai also established the Industrial Support Coordinator Team in 2017 to boost trade connections between Vietnamese and Japanese enterprises.

Regarding high-quality human resource training units, universities are also proactively seeking partners to launch training programs in this field. Lac Hong University, the province's largest institution in technology training, has actively linked with enterprises for student visits, internships, and research projects. The university has a memorandum of cooperation with On Semiconductor Vietnam Co., Ltd. to support training, provide equipment related to electronics, and semiconductor chip production, helping students familiarize with professional semiconductor component manufacturing processes. The university also collaborates with over 10 Taiwanese universities to exchange students and lecturers to enhance expertise in the semiconductor field. It has introduced a new major in semiconductor circuit design technology, with advisory support from Arizona State University (U.S.), starting enrollment in 2024. ​

Author: Bao Nguyen

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