Danang lights the way in building chip/AI ecosystem

Danang is committed to encouraging sci-tech application and ensuring good conditions for tech enterprises, Photo: Tien Ngoc Tran

In mid-March, the National Innovation Centre under the Ministry of Finance, in collaboration with US-based Aitomactic, held a Vision & Partnership Day in Danang to highlight the city’s strategy to develop its AI and semiconductor ecosystem.

The event was part of an international conference on the topic, which ran March 12-14 in Hanoi.

Le Trung Chinh, Chairman of Danang People’s Committee, said, “Leveraging its 20 years of experience in high-tech development,

Danang is positioning itself to become a semiconductor and AI hub of the future. To facilitate the goal, it has doubled the number of its semiconductor enterprises from to 18 over the last two years, alongside many homegrown AI-driven startups.”

He noted that Danang also envisions itself as an ideal destination for AI and semiconductor corporations. Thus, the city has strengthened commitment to support companies to invest in research and development (R&D) and the application of emerging technologies.

“Several programmes have been actively implemented to boost R&D, as well as human resource development and training collaboration. There are also incentives for businesses with technology applications in urban management and public administration,” Chinh said.

Specific incentives

Thanks to these efforts, Danang has fostered strong collaboration with the public sector, private businesses, and research institutes to develop real-life technology products and solutions. Many leading tech corporations like Synopsys, Marvell, Renesas, Qorvo, Nvidia, and Intel have flocked to the city to explore investment opportunities and set up R&D offices.

One of the driving forces for the city’s high-tech development is Resolution No.136/2024/QH15, which outlines specific incentive policies for Danang to attract strategic investors and partners in the development of semiconductor chips, AI, science and technology, innovation, and IT. The resolution is being piloted specifically for Danang for five years from this January.

Policies include exemption from personal income tax (PIT) and corporate income tax for organisations with income from the transfer of shares and capital contributions to innovative enterprises, semiconductor chip activities, and AI for a period of five years.

Further developments include an exemption from PIT for five years for income from innovative startup activities, work in the fields of design, production, packaging, and testing of semiconductor microchips, as well as AI working at enterprises in the city.

The city also supports training and development costs for students majoring in semiconductor microchips, as well as preferential treatment in terms of income and accommodation costs.

Additionally, last December Resolution No.57-NQ/TW was issued on science, technology, innovation, and national digital transformation. Danang has identified this as a great opportunity to accelerate the development of core technology industries.

The city is committed to encouraging the application of sci-tech in all industries and creating better conditions for tech enterprises, especially those specialising in semiconductor microchips and AI, to grow and integrate into the global value chain.

“To encourage sustainable development, the city is focused on infrastructure, personnel, and policies. Technology infrastructure is being heavily invested in, including Danang High-Tech Park, Software Park No.2, and other innovation centres,” Chairman Chinh said.

Priority is also given to development through intensive training programmes in collaboration with leading universities and large corporations such as Synopsys, Nvidia, and Intel, Chinh added. “As investment incentives are implemented synchronously, the city is rolling out the red carpet for domestic and foreign enterprises,” he said.

Furthermore, Danang is fostering international cooperation by enticing major firms to invest and expand in the city. In addition to AI, Danang aspires to develop the stages of microchip design, fabrication, testing, and packaging, allowing enterprises to complete their supply chains in the locality.

Young and dynamic city

Going forward, Danang hopes that the city will become more popular among the international business community as an ideal destination for investment, research, development, and application of semiconductor and AI technology.

Christopher Nguyen, founder of Aitomatic, said, “Danang should maintain its focus on attracting foreign direct investment, particularly in semiconductors and AI. This can be achieved by formulating clear policies to support and encourage businesses in such industries.”

Nhu Huy Hoang, general director of American chip design experts NousLogic Telehealth Company, also suggested that Danang should continue to focus on semiconductors and AI as they complement each other for development.

“Danang is a young and dynamic city, so there will be many investors and businesses coming to invest. Therefore, the city needs to create the most attractive working environment and surrounding ecosystem to draw in investors and experts. In addition, it is also necessary for Danang to focus on training high-quality workers to meet the needs of businesses.”

Le Hoang Phuc, director of the Danang Centre for Research and Training in Microchip Design and AI, added, “The agency will call for investment in infrastructure to support research in microchips and AI, such as computing centres and research labs for training. At the same time, we advise implementing resolutions regulating policies for related development in the city.”

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