The Vietnamese Government has taken bold initiatives to attract the semiconductor industry, especially drawing in investors with substantial capabilities and strong, reputable brands. Viglacera and the Vietnamese business community have responded promptly and positively to this new strategic requirement.
Signals from Semiconductor Industry Giants
In a joint statement on the Comprehensive Strategic Partnership between Vietnam and the United States in September 2023, the U.S. government pledged an initial grant of $2 million. This marks a new milestone for Vietnam’s entry into the semiconductor industry, valued at hundreds of billions of dollars.
Three months later, during Prime Minister Pham Minh Chinh’s visit to Japan, Japanese Prime Minister Kishida Fumio emphasized, “Cooperation with Vietnam knows no bounds, and Japanese companies are ready to transfer technology to Vietnam.” Immediately following, Mr. Yoshitaka Kitao, Chairman of SBI Holdings (specializing in semiconductor technology), revealed, “The group is considering expanding overseas, with Vietnam being a promising destination.”
In December in Hanoi, the commitment made by Mr. Jensen Huang, President, and CEO of Nvidia (the world’s most valuable chip manufacturer with a market value of nearly $1.2 trillion) caused a stir in the Vietnamese technology community: “Nvidia aims to establish a presence in Vietnam as a hub to attract talent from around the world, contributing to the development of the semiconductor and artificial intelligence ecosystem.”
Mr. Jensen Huang, President – General Director of Nvidia Corporation. Photo: Nhat Bac
Mr. John Neuffer, head of the U.S. Semiconductor Industry Association (SIA), also shared: “Many SIA member companies are already present in Vietnam, including Intel, Marvell, Synopsys, Qualcomm, Ampere, Infineon… Many companies plan to double their expected investments.”
In San Francisco, Prime Minister Pham Minh Chinh witnessed the signing of an agreement to support the development of Vietnam’s semiconductor industry.
The Allure of the Semiconductor Industry
The allure of the semiconductor industry is undeniable, but for Vietnam to stand in the global supply chain, several fundamental factors need to be activated.
Firstly, high-quality workforce training to meet the requirements of semiconductor industry investors.
Secondly, the formulation of prioritized policies for semiconductor chip production.
Thirdly, investment in semiconductor industrial infrastructure, coupled with the development of information technology and digital transformation.
Viglacera & the “Building Nests to Welcome Eagles” Strategy
Acknowledging these three factors as legitimate requirements and considering it a national duty, Viglacera emphasizes that for Vietnam to succeed, businesses must take decisive action to show investors that Vietnam is indeed the right choice.
Viglacera Corporation welcomed a visit and working session from Mr.John Neuffer, President and CEO of the Semiconductor Industry Association (SIA), at the Yen Phong 2C Industrial Park.
The guiding principle is clear: the success of investors is also the success of Vietnam and Viglacera. Therefore, since 2019, amidst the tense circumstances of the COVID-19 pandemic, Viglacera has proactively implemented synchronized, standardized, and modern industrial infrastructure, anticipating the influx of semiconductor industry investments.
The specific and unique demands of the semiconductor industry, such as proximity to international airports, guaranteed power sources, or high-quality labor from reputable universities like Bach Khoa and FPT, are all part of Viglacera’s recruitment support plan. In every situation, Viglacera has proven itself unflinching in the face of any demands posed by investors.
Initial Achievements & Optimistic Forecasts
On October 11, 2023, after nearly two years of construction, Amkor Technology Vietnam officially inaugurated the world’s largest Amkor plant in the Yen Phong II-C Industrial Zone, invested and developed by Viglacera.
Amkor currently operates the largest factory globally in Yen Phong 2C Industrial Park
Amkor, a leading Arizona-based conglomerate in the OSAT industry, packaging and testing semiconductors with a variety of diverse semiconductor products, quickly became a crucial pillar in the company’s global network.
Two months later, a $90 million semiconductor equipment manufacturing plant commenced construction in the Yen Phong 2C Industrial Zone (Bac Ninh), invested by Micro Commercial Components Vietnam, a subsidiary of Yangjie Technology (China). Although MCC’s first plant in Vietnam, it is the seventh worldwide, supplying semiconductor components to partners such as Huawei, BYD, Philips, and Sony.
Viglacera’s Industrial Zones can fully meet the stringent demands of the world’s leading corporations.
Thus, Viglacera sends a positive signal to Vietnam about the formation and development of the semiconductor ecosystem, placing Vietnam on the world map for semiconductor component production. This lays the groundwork to attract more significant investors in the future.