Vietnam in the competition in the semiconductor industry

Hanoi [Vietnam], April 13: On a business trip to Vietnam, Dr. George Chiu, professor of mechanical engineering at Purdue University (USA) and someone who has done a lot of research on the semiconductor industry , on April 11 gave an interview to Thanh Nien.
Good strategy but lots of competition
According to the draft Project "Developing human resources in the semiconductor industry until 2030, with a vision to 2045" that the Ministry of Planning and Investment recently revealed, Vietnam aims to be able to participate in the field by 2030. deeply into the design process of modern semiconductor circuits, mastering part of packaging and testing technology, as well as training 50,000 engineers for this industry.
Assessing these goals, Dr. George Chiu said that Vietnam's strategy of focusing on design, packaging and testing in the semiconductor field is a good strategy, but competition is also very fierce, especially in the semiconductor industry. Southeast Asia .
"The Philippines, Malaysia and India are all eyeing a piece of the pie. This really requires countries to be very strategic in how they deploy their strategies," he said.
Vietnam's advantages and lessons from Taiwan
Revenue of the global semiconductor industry will total 526.8 billion USD in 2023, down 8.2% compared to 2022, according to the Semiconductor Industry Association (SIA, headquartered in the US). However, that does not reduce the heat of this field, which is witnessing competition likened to "the next space race".
Vietnam is also not on the sidelines. According to Dr. Chiu, a big advantage of Vietnam in its efforts to attract investment in this field is that it has demonstrated its production capacity. "You have the workers, you have the process, you have the infrastructure to support production activities. You are not new to the group," he analyzed.
However, he said that Vietnam may face three challenges, including: the ability to provide a skilled workforce; the ability to develop clear and transparent regulations; and the ability to innovate - an issue he considers central. "Innovation and intellectual property are the keys for companies to grow... that's where the money starts to flow," Mr. Chiu said.
Dr. Chiu also mentioned the success story of Taiwan, the world's leading semiconductor chip manufacturer. According to research firm TrendForce, Taiwan holds 46% of global semiconductor manufacturing capacity in 2023, followed by China (26%), South Korea (12%), the US (6%) and Japan. (2%). Mr. Chiu noted that Taiwan's success did not come in one day but was a process of nearly 30 years.
"Taiwan has built an ecosystem that supports the semiconductor industry, while many people often tend to underestimate the importance of that ecosystem," he said when asked about lessons from Taiwan.
Opportunity from America
Also according to Dr. Chiu, although the semiconductor field "may still be hot for another 10, 20 years", the future will have other things appear. "If you want to find a position for yourself, you can rely on what has happened now, but be mentally prepared for new things in the future," he said.
Currently, key technologies in the semiconductor sector are in the hands of only a few economies and many countries have difficulty accessing them. This is not only a business matter but also involves more sensitive issues of politics and national security.
Therefore, Dr. Chiu believes that the US commitment to supporting Vietnam to develop the semiconductor industry is important. After upgrading relations to the level of comprehensive strategic partnership in September 2023, the two countries have begun implementing cooperative activities in this field.
Source: Thanh Nien Newspaper