Germany's Infineon Technologies sets up chip development center in Vietnam 

Germany-based Infineon Technologies AG, a global leader in automotive, power management, energy efficient technology, and the Internet of Things (IoT), opened a new center for chip development in Hanoi on Wednesday.

With Vietnam emerging as a key player in the global electronics value chain, this development center will be a vital contributor for Infineon's Design & Enabling Services (DES) ambitious competency growth plans, according to the German business.

It will also focus on microcontroller chip verification for automotive applications to support strong growth in the industry.

Infineon plans to recruit 25 staff for its Vietnam team this year, focusing on testing and customizing integrated, analog and digital circuits, automotive vehicle apps, battery management, and balance, among others.

Speaking at the event, Do Nhat Hoang, head of the Foreign Investment Agency at the Ministry of Planning and Investment, said amid global instability and the business trend of reforming supply chains, Vietnam is prepared to welcome opportunities related to the green, circular, digital, and intellectual economies.

"The Southeast Asian country has updated its legal framework to support the high-tech sector, especially research and development (R&D) and workforce training," he said.

Infineon Technologies recorded a revenue of EUR14.22 billion ($15.19 billion) in fiscal year 2022, of which automotive accounted for the biggest portion of 45%, power and sensor systems with 29%, green industrial power with 13%, and connected secured systems with 13%.

Infineon estimated the global semiconductor industry’s revenue reached $556 billion in 2021, $573 billion in 2022, and between $532 billion and $604 billion in 2023-2024.

Vietnam is in a position to become the next chip design hub, with Southeast Asia a natural choice for semiconductor factories looking to relocate from China.

Currently, most of Vietnam’s chip exports are produced by foreign-invested companies. Amid the trend, U.S. chip vendor Marvell Technology announced on May 16 its plans to establish a world-class design center in Ho Chi Minh City.

Last year, the U.S.-based electronic design automation (EDA) company Synopsys started to expand its investment in Vietnam, announcing its commitment to training Vietnamese chip designers in HCMC.

American giant Intel was the first major corporation to start the chip-making process in Vietnam with a test and assembly facility based in HCMC, and Intel has so far invested $1.5 billion in the country, with fresh investments in the pipeline.

After Intel, other major global players like Samsung, Qualcomm, Texas Instruments, SK Hynix, Hayward Quartz Technology, Synopsys, and NXP Semiconductors entered the country.

Vietnam has risen to become the third largest chip exporter to the U.S., behind Malaysia and Taiwan, according to the Vietnamese Ministry of Information and Communications.