Vietnamese, Korean businesses ink chip production cooperation pact

Hanoi-based N&G Group JSC, South Korea’s Cheongju entrepreneur council (CEC) and the Hanoi Supporting Industries Business Association (HANSIBA) signed an agreement on chip production Wednesday.

Per the memorandum of understanding (MoU) signed by the three sides , N&G Group will prepare the infrastructure at its industrial parks across three regions of Vietnam, including houses for experts and workers, training facilities, logistics and other facilities. HANSIBA will help connect and exchange goods and services among domestic and foreign businesses in the supporting industries.

Together, the three sides will train high-quality workers, conduct technology transfer, and manage chip production serving multiple sectors including aviation, maritime economy, consumer goods and agriculture-forestry-fisheries.

Nguyen Hoang, chairman of both HANSIBA and N&G Group, said that for chip production, Vietnam can offer strong infrastructure and a young and qualified workforce. Another strength is the country’s supporting policies for the sector, he added.

Sung-Hun Jung, director of Semisol Tech, said Korean businesses were keen on cooperating with Vietnamese businesses to utilize free trade agreements that Vietnam is a signatory to.

Intel is the first semiconductor investors in Vietnam. The American giant chipmaker began its Vietnam investments in 2006, building Intel Products Vietnam (IPV) in Ho Chi Minh City as its single largest assembly and test plant. With a total investment of $1.5 billion to date, it is the largest U.S. high-tech investment in Vietnam.

Intel has plans to invest another $1.5 billion in Vietnam for chip manufacturing, according to Prof. Nguyen Mai, chairman of the Vietnam Association of Foreign-Invested Enterprises (VAFIE). This would be Intel's third factory outside the U.S., with the other two in Scotland and Israel, he added.

In September, South Korea’s Hana Micron Vina Co., Ltd. inaugurated a semiconductor plant in Bac Giang province, the first of its kind in northern Vietnam. The project, located in Van Trung Industrial Park, manufactures integrated circuit boards used for mobile phones and other smart electronic products. Hana Micron Vina will be the number one production facility in Hana Micron Group's global business operations, and personnel in Vietnam will account for 70% of its total workforce, he said, adding the company's revenue is expected to reach $300 million this year.

Then in October, The U.S.-based Amkor Technology Inc., a leading provider of semiconductor packaging and test services, held a grand opening for its newest factory in Vietnam’s northern province of Bac Ninh. This is the second semiconductor factory in northern Vietnam. The facility is Amkor’s most extensive facility, covering 57 acres (23.1 hectares) in Yen Phong 2C Industrial Park. Beginning with Advanced System in Package (SiP) and memory production, the factory will offer turnkey solutions, from design to electrical testing.