Vietnam sets up national center to support semiconductor prototyping

Vietnam’s Ministry of Science and Technology has decided to establish a national center for semiconductor chip prototyping, a move aimed at developing human resources and supporting businesses in the fast-growing semiconductor sector.

The ministry said semiconductors have been identified as a strategic technology, playing a key role in boosting competitiveness, driving economic growth, and strengthening Vietnam’s national standing.

In 2024, Vietnam’s hardware exports exceeded $132 billion, supported by a young and abundant workforce, with about 1.9 million people employed in technology-related fields and more than 7,000 chip design engineers.

Vietnam currently hosts more than 170 foreign-invested semiconductor projects with total registered capital of nearly $11.6 billion, concentrated mainly in chip design, packaging and testing. Around 60 chip design companies, eight packaging and testing projects, and more than 20 firms producing and supplying materials and equipment are operating in the country.

The newly established center will support organizations and individuals in semiconductor chip prototyping by providing tools, semiconductor design software libraries, and technical assistance across the design process and pilot production stages.

It will also coordinate with fabrication plants, packaging and testing facilities and technology partners involved in chip prototyping, the ministry said.

Another key task of the center is to train and develop semiconductor talent through courses and hands-on programs, while supporting universities in chip design activities.

It will also help startups and the commercialization of semiconductor products by linking firms with investment funds and national funding programs, as well as providing testing and performance evaluation services after pilot production.

In addition, it aims to foster ecosystem development and international linkages by building networks with organizations and companies in advanced semiconductor countries, sharing data and open technologies, and encouraging the development of open-source chip design libraries.

The center will provide prototyping support services, licensing of electronic design automation (EDA) software, sharing of intellectual property design libraries, technical design reviews, training and testing services, in line with Vietnamese regulations.

Vietnam eyes role as new semiconductor hub

To capitalize on its advantages, the government has approved a national semiconductor industry development strategy to 2030, with a vision to 2050, summarized by the formula “C = SET +1”.

Under the framework, “C” stands for semiconductor chips, “S” for specialized chips, “E” for electronics, “T” for talent, while “+1” reflects Vietnam’s ambition to become a new, safe destination in the global semiconductor supply chain.

The strategy rests on four core pillars. First, Vietnam will focus resources and special incentives on research, design and production of specialized chips, supporting the sustainable development of electronics and IoT industries.

Second, semiconductor development will be closely integrated with the broader electronics industry, ensuring it evolves as part of Vietnam’s overall electronics industry ecosystem.

Third, Vietnam will prioritize investment in high-quality human resources, with the goal of becoming a global semiconductor talent hub capable of deeper participation in the industry.

Finally, Vietnam plans to leverage its geopolitical position and strategic partnerships to position itself as a new destination in the global diversification of semiconductor supply chains.

Alongside the strategy, ministries and agencies have rolled out a range of policies to develop high-quality semiconductor talent, including incentives on personal and corporate income tax, import-export preferences, the establishment of research and investment support funds, and the development of shared infrastructure to accelerate the growth of Vietnam’s semiconductor industry.