Danang city accelerates in semiconductor development race

Vietnam's central city of Danang will devise special policies for its development, including one on the development of the microchip and semiconductor industry, to submit to the National Assembly for approval.

Breakthrough policies

Danang launched a program on the development of the microchip and semiconductor industry in October 2023 when it officially announced the establishment of the Danang Semiconductor and AI Center (DSAC).

Nguyen Quang Thanh, director of the municipal Department of Information and Communications, said that the city has also asked the government to allow it to use public assets such as information infrastructure to attract investors in the fields of semiconductor chips and artificial intelligence (AI).

Regarding policies on training human resources in these fields, he said that the city should develop support policies to attract experts and overseas Vietnamese to come to work and transfer knowledge, such as income tax exemptions and support policies on accommodation, visas and work permits.

In particular, Danang will implement programs to support universities and training institutions in accessing technologies to operate infrastructure facilities serving the development of semiconductor chips and ICs.

"The development of the microchip and semiconductor industry must give priority to human resources, businesses and training institutions with favorable environmental mechanisms and management policies," Thanh said.

Welcoming semiconductor investment wave

According to Trinh Thanh Lam, sales director of Synopsys South Asia, Danang now has a second software park and is asking for a mechanism to attract large businesses looking to lease space. Synopsys plans to double its workforce in Danang this year, so it is in need of offices and workplaces.

"The firm hopes to enter the software park No. 2 when it is operational. Many leading businesses in technology and microchips intend to land in Danang, employing local human resources. In particular, international connection and investment attraction are very important now the city has determined to train an IC workforce for the world," Lam said.

According to Lam, Danang has committed to training 10,000 personnel in IC design, and the target is feasible because students at some local schools have defended their theses in English. The issue now is how to connect supply and demand, he noted.

“Semiconductors is a difficult major. We should think about helping children from disadvantaged families to come to Danang to study this major under international standards, ensuring they can get jobs right after graduation,” Lam said.

Nguyen Hoang Minh, general director of FPT Information System (FPT IS), a subsidiary of tech giant FPT Corporation, held that Danang possesses enough potential to keep pace with emerging fields such as semiconductors, AI, and high technology. In particular, it is a dynamic city with abundant human resources and a goal of having 75,000 digital technology workers by 2025.

The city has also issued comprehensive action programs to implement its digital transformation strategy, he added.

According to Minh, FPT wants to accompany Danang to continue to explore, develop and tap available potential in these emerging fields.

"We expect to create a technology incubator in central Vietnam and expand the quality product ecosystem to accompany domestic and international customers. FPT will contribute to bringing foreign investors to Danang, helping it become Vietnam's Silicon Valley, thus promoting the development of products based on new technology, and creating a strong, innovative community," Minh said.