Ho Chi Minh City plans up to $600,000 support for domestic semiconductor design projects

Ho Chi Minh City plans to support up to $600,000 for each domestic semiconductor chip design project. Photo: Le Toan

It marks a crucial policy boost to boost the development of this strategic industry, befitting its position as the largest technology centre in the country.

According to Ho Chi Minh City Department of Science and Technology (the drafting authority), although the city is a hub concentrating most research institutes, universities, and microchip human resources nationwide, domestic businesses are still facing enormous financial barriers. The high costs of training, R&D, and equipment investment are bottlenecks that the market cannot regulate on its own.

To address this issue, the draft proposes a support level of 30 per cent of the total project implementation cost, but not exceeding $600,000 per project. The support focuses on four core areas: human resource training and development; R&D; pilot production; and investment in technology, machinery, and equipment for chip design.

This policy gives priority to domestic businesses (established under Vietnamese laws, headquartered and paying taxes in Ho Chi Minh City) and does not apply to foreign-invested enterprises or multinational corporations.

One of the most innovative and groundbreaking aspects of this draft is intellectual property rights. Unlike typical support programmes, Ho Chi Minh City plans to grant businesses full registration and ownership rights to research results and intellectual property generated from the project. The city will not regulate profits or require a share of the commercial value generated from the exploitation of these assets.

To receive support, projects must meet stringent criteria regarding feasibility, innovation, and especially contribute to the creation of new core technologies or core designs. Businesses also need to have a plan for matching capital and prioritise research collaboration with institutes and universities or utilise the city's shared laboratory system.

Amid Vietnam's rapidly growing semiconductor industry, with revenue reaching $21 billion by 2025 and a workforce of over 7,000 engineers, Ho Chi Minh City's continued refinement of special mechanisms in 2026 is expected to create highly applicable "Made in Vietnam" chips that meet market demands.

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