FPT, VinFast join global chip supply chain

By Nguyen Tuong
Tue, September 27, 2022 | 4:15 pm GMT+7

Vietnamese giants FPT and VinFast are entering the world's semiconductor industry amid a global shortage of this critical part in automobile and electronics manufacturing.

Some countries like the US consider chip production as a strategic industry for national security. Photo courtesy of The Hill.

Some countries like the US consider chip production as a strategic industry for national security. Photo courtesy of The Hill.

Vietnam's leading ICT company FPT Software recently launched FPT Semiconductor. Through the new subsidiary, FPT Software aims to gain a slice of Asia Pacific's semiconductor market, which accounts for 60% of global sales, the Hanoi-based firm said Monday.

FPT Semiconductor has released its first integrated circuits (ICs), designed in Vietnam and manufactured in South Korea.

“These ICs will be used in Internet of Things medical devices. By 2023, FPT Semiconductor plans to supply 25 million chips globally in seven types to meet diverse needs in telecommunications, IoT, automotive technology, energy, electronics, and others,” it said in a release.

FPT Software cited data from premier global market intelligence firm IDC projecting that worldwide semiconductor revenue will reach $661 billion in 2022, an increase of 13.7% over 2021.

"We look forward to contributing to the development of the fast-growing semiconductor industry in Vietnam and Asia on a broader scale," said FPT Semiconductor's founder and CEO Nguyen Vinh Quang.

"FPT Semiconductor looks to become the chip supplier of choice for businesses in Vietnam and further in Japan, Korea, Taiwan, mainland China, the U.S., and Europe," he added.

After 23 years of leadership in IT services and solutions in Vietnam, FPT Software said it decided to venture into fabless manufacturing. With the establishment of FPT Semiconductor, FPT Software continues to extend its comprehensive ecosystem of digital transformation services and solutions.

Building on the global presence and years of experience across various domains, the firm hopes to accompany clients with consulting and implementing tailor-made solutions, and now with supplying semiconductor components added to its portfolio.

"We are proud that the whole research and development process is conducted by FPT Software's leading engineers in Vietnam," said FPT Software chief operating officer and FPT Semiconductor chairman Tran Dang Hoa.

"The launch of FPT Semiconductor is a testament to Vietnamese intelligence as well as our commitment to continue seeking areas to grow, bringing technological advancement to the business community," he noted.

FPT Tower - FPT Corporation’s headquarters in Hanoi. Photo courtesy of FPT.

FPT Tower - FPT Corporation’s headquarters in Hanoi. Photo courtesy of FPT.

Semiconductors are a vital component for many industries from consumer electronics to aerospace and have been in high demand since the Covid-19 pandemic. Further advancements in semiconductor technology will be essential to facilitate a new wave of transformative technologies, including artificial intelligence, 5G, electric vehicles (EVs) and IoT solutions.

VinFast, Vietnam’s first global EV maker, and Japan’s Renesas Electronics, a premier supplier of advanced semiconductor solutions, announced Monday that the duo are expanding their collaboration agreement to include automotive technology development of EVs and delivery of system components. The signing of the strategic collaboration took place at VinFast’s factory in Vietnam’s Hai Phong city earlier this month.

Under the deal, Renesas will provide VinFast with products like system-on-chips (SoCs), microcontrollers, analog and power semiconductors. Renesas will also provide technical support to assist VinFast in developing future automotive applications and mobility services.

SoC is an integrated circuit that integrates most or all components of a computer or other electronic systems.

“This new partnership with Renesas will give VinFast access to both advanced in-vehicle semiconductor technology as well as high-level system expertise, with the aim to accelerate the development of safe and sophisticated EVs for global markets,” Le Thi Thu Thuy, vice chairwoman of Vingroup and Global CEO of VinFast, said in the duo’s joint announcement.

VinFast and Renesas have previously collaborated on automotive infotainment systems. Renesas’ SoCs, R-Car hardware platform, and analog products have been implemented in VinFast's new VF8 and VF9 EV models, which are already in use in Vietnam and will be delivered to buyers in Canada, the U.S., and Europe this December.

In a meeting with Prime Minister Pham Minh Chinh on August 16, Vietnamese telecom giant Viettel proposed to the government it would produce chips to meet increasing foreign and domestic demands.

In response, Chinh ordered the military-run group to research and produce chips to assist the country's national digitalization and development of a digital government, digital economy, and digital society.

Vietnam is already home to factories of giant chipmakers like Samsung and Intel. U.S.-based Amkor Technology Inc., a global semiconductor product packaging and test services provider, said it was investing as much as $1.6 billion until 2035 to build a state-of-the-art facility in Bac Ninh province, northern Vietnam as an important part of the American corporation’s worldwide network.

The world has witnessed a shortage of chips which has impacted across-the-board sectors. Powerhouses like the U.S., China and Europe are boosting chip production for national security.

Comments (0)
  • Read More
S Korea promotes trade with ASEAN through free trade agreement

S Korea promotes trade with ASEAN through free trade agreement

South Korea is promoting negotiations to improve the Free Trade Agreement (FTA) with the Association of Southeast Asian Nations (ASEAN) to further benefit businesses.

Southeast Asia - Thu, March 14, 2024 | 10:32 pm GMT+7

Indonesia firm on election of future Jakarta governors: official

Indonesia firm on election of future Jakarta governors: official

The Indonesian government is firm on its stance that future Jakarta governors should be elected by Jakarta residents instead of being appointed by the central government, said Home Affairs Minister Tito Karnavian.

Southeast Asia - Thu, March 14, 2024 | 10:28 pm GMT+7

Giant pot of pho broth highlights festival in Nam Dinh province

Giant pot of pho broth highlights festival in Nam Dinh province

Pho Festival 2024 in the northern city of Nam Dinh will feature a 300-litre saucepan of broth cooked by 20 local artisans and 30 helpers.

Travel - Thu, March 14, 2024 | 5:36 pm GMT+7

New night tour offers an escape to history

New night tour offers an escape to history

Seeing Hanoi at night is proving really popular for tourists visiting the capital.

Travel - Thu, March 14, 2024 | 5:22 pm GMT+7

Vietnam PM orders lower lending rates, wider credit access

Vietnam PM orders lower lending rates, wider credit access

Vietnamese Prime Minister Pham Minh Chinh has asked the central bank and commercial lenders to further lower lending interest rates and facilitate greater credit access.

Banking - Thu, March 14, 2024 | 4:39 pm GMT+7

Chinese photovoltaics manufacturer GoodWe opens first overseas factory in Vietnam

Chinese photovoltaics manufacturer GoodWe opens first overseas factory in Vietnam

GoodWe Vietnam Technology Co. Ltd., under Chinese photovoltaic inverter manufacturer and smart energy solution provider GoodWe, has opened a factory in the northern coastal city of Hai Phong.

Energy - Thu, March 14, 2024 | 4:32 pm GMT+7

Vietnam looks to hasten removal of obstacles for offshore wind, LNG power projects

Vietnam looks to hasten removal of obstacles for offshore wind, LNG power projects

The Vietnamese government has asked ministries and agencies to speed up the removal of obstacles facing offshore wind and liquefied natural gas (LNG) fired power projects.

Energy - Thu, March 14, 2024 | 3:56 pm GMT+7

Sumitomo, Vingroup ink green transport development pact

Sumitomo, Vingroup ink green transport development pact

Japanese keiretsu Sumitomo and taxi operator GSM JSC uder Vietnamese conglomerate Vingroup inked a green transportation development agreement on Tuesday to foster carbon neutrality in Vietnam.

Companies - Thu, March 14, 2024 | 3:02 pm GMT+7

Southeast Asia becomes Tesla's priority for expansion

Southeast Asia becomes Tesla's priority for expansion

Expansion into Southeast Asia is a priority of Tesla, Rohan Patel, a senior executive of the US automotive company, said on Tuesday, highlighting the fast-growing market where the company faces competition from China's BYD.

Southeast Asia - Thu, March 14, 2024 | 12:04 pm GMT+7

Sumitomo-invested $2.58 bln thermal power plant in central Vietnam inaugurated

Sumitomo-invested $2.58 bln thermal power plant in central Vietnam inaugurated

Van Phong Power Company, a wholly-owned subsidiary of Japanese keiretsu Sumitomo, inaugurated the 1,432 MW Van Phong 1 coal-fired power plant in Vietnam’s central province of Khanh Hoa on Wednesday.

Energy - Thu, March 14, 2024 | 11:50 am GMT+7

Vietnamese economy making dynamic shift with robust growth: Hong Kong news site

Vietnamese economy making dynamic shift with robust growth: Hong Kong news site

Vietnam is going through a dynamic shift, marked by robust growth and the development of several key trends supporting a stronger looking future, according to an article recently published by the Hong Kong-based news site asianinsiders.com.

Southeast Asia - Thu, March 14, 2024 | 11:43 am GMT+7

Vietnam central bank continues cash withdrawals with $1.82 bln in 3 days

Vietnam central bank continues cash withdrawals with $1.82 bln in 3 days

The State Bank of Vietnam (SBV), the country’s central bank, withdrew a total of VND45 trillion ($1.82 billion) over three consecutive days ending Wednesday in an attempt to cool the U.S. dollar rally in the country.

Banking - Thu, March 14, 2024 | 11:04 am GMT+7

Denmark’s Vestas, Vietnam’s IPICO to cooperate in wind power development

Denmark’s Vestas, Vietnam’s IPICO to cooperate in wind power development

Denmark’s leading wind power business Vestas and Vietnam’s top industrial park developer Son My Industrial Park Investment Construction and Trading Infrastructure JSC (IPICO) have announced plans to cooperate in wind power development.

Energy - Thu, March 14, 2024 | 10:55 am GMT+7

Nokia wants share in Vietnam’s 5G commercialization

Nokia wants share in Vietnam’s 5G commercialization

Finnish giant Nokia and its government are interested in becoming a reliable partner in Vietnam’s digital transformation and joining local telcos in the fifth generation (5G) commercialization process.

Infrastructure - Thu, March 14, 2024 | 10:14 am GMT+7

Scholar analyzes why US should recognize Vietnam as market economy

Scholar analyzes why US should recognize Vietnam as market economy

The newly elevated relationship between Vietnam and the U.S. to a Comprehensive Strategic Partnership not only deepens the two countries’ diplomatic relations, but translates as an opportunity for Washington to upgrade Vietnam’s recognition as a market economy, said James Borton, a non-resident senior fellow at the Foreign Policy Institute at Johns Hopkins University’s Paul H. Nitze School of Advanced International Studies.

Southeast Asia - Thu, March 14, 2024 | 9:13 am GMT+7

Vietnam football betting to get a leg up with amended law, decree

Vietnam football betting to get a leg up with amended law, decree

Recent Bidding Law amendments and a decree that guides their implementation are likely to boost the football betting business in Vietnam, says a new government report.

Economy - Thu, March 14, 2024 | 7:40 am GMT+7