Vietnam semiconductor manufacturing industry ready to join global supply chain

The "Global semiconductor equipment supply chain: Opportunities for Vietnam's manufacturing industry" workshop was held on November 7 at the National Innovation Centre. This workshop is part of the SEMIExpo Viet Nam 2024, organised by the Ministry of Planning and Investment and SEMI, a leading microelectronics industry association.

In his opening remarks, Nguyen Duc Tam, deputy minister of planning and investment, expressed optimism about the future of Vietnam's semiconductor industry for the country to become a reliable partner in the global semiconductor supply chain.

"Vietnam is ready to embrace the opportunity to cooperate with enterprises and investors from all over the world in the semiconductor industry," Tam said.

Photo: National Innovation Centre

The deputy minister said that Vietnam has been promoting the growth of the semiconductor industry with developed countries. Through the expansion of cooperative relations with reputable semiconductor partners worldwide, the country has been implementing the motto "if you want to go fast, go alone, if you want to go far, go together".

Kees van Baar, ambassador of the Netherlands to Vietnam, said, "Vietnam can fully utilise and promote its existing supporting industries to participate more deeply in this value chain. Semiconductor equipment manufacturing is the cornerstone of the Netherlands' semiconductor industry, and the Netherlands is ready to cooperate with Vietnam to contribute to the common development of the global semiconductor industry."

At the workshop, senior leaders from major corporations shared their reasons why Vietnam has become an ideal destination for software development and high-tech manufacturing.

According to Hans Duisters, founder of Brainport Industries, CEO and founder of Sioux Group, over the past 12 years, Sioux has chosen Vietnam as a location to develop software because it has seen the potential of human resources in the IT field. Sioux has achieved great success with a team of 70 software engineers in Danang, and Duisters also sees the chance to expand into other engineering fields such as mechanics and mechatronics.

"To make Vietnam a more attractive destination for high-tech investment, it is very necessary to develop education and connect with experienced regions in the industry. This is not only a necessary factor to attract more foreign investment, but also to create a sustainable foundation for the development of high-tech engineering in Vietnam in the future," he said.

Ricky Sim, managing director and CEO of Advantest Singapore, emphasised that Vietnam has great potential to become a destination for manufacturing and research and development (R&D) in the semiconductor industry.

According to Sim, the important factors he considers when choosing a new location include the quality and reliability of personnel, supporting infrastructure, government policies and regulations, and transportation convenience.

"Although R&D is still mainly concentrated in Japan, Europe, and the US at present, Vietnam is has the potential to participate in the semiconductor supply chain in the future," Ricky said.

The speakers also pointed out that building a supporting ecosystem for the semiconductor industry, especially in equipment manufacturing, is essential. The connection and cooperation between domestic and foreign enterprises will be a key factor in enhancing competitiveness and sustainable development for Vietnamese enterprises in this value chain.

Andrew Goh, corporate vice president and general manager of LAM Research, emphasised that suppliers need to meet high standards and supply chain management.

"Open communication and mutual trust are key factors in building an effective supply chain. Currently, we have some suppliers in Vietnam, and components have been manufactured and shipped to our factory in Malaysia. Connectivity between countries is necessary to maintain a sustainable supply chain," he said.

Steven Lim KT, vice president of strategic projects at BESI Vietnam, called on Vietnamese enterprises to be prepared to participate in the supply chain. He stressed, "Although the current supply chain is still small, this is a good opportunity for enterprises to cooperate with us. Prepare thoroughly, as the major development phase in 2027-2028 will bring many opportunities to share the fruits of success. BESI is committed to supporting suppliers through training and technical improvement programmes, contributing to improving production capacity and product quality."

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