Vietnam Proposed to Build Semiconductor Chip Plant

Vietnam should build a chip manufacturing factory and accompanied supply chains to serve semi-conductor industry, which will help the nation transform its labor-intensive industry into a technology-driven one.

The proposal was made by Dr Pham Ba Tuan, vice president of EM Microelectronic Marin Sa, a semi-conductor manufacturer based in Switzerland, at a symposium on integrated circuit technology in Ho Chi Minh City June 17-18 with the participation of 200 local and foreign delegates.

The country will spend around $200 million for a plant capable to manufacture between 400 million and 600 million chips per year and bring in at least $100 million in revenues, Tuan said.

The factory will play an important role in the industry development process of Vietnam, and help its young semiconductor industry develop designing capacity.

“Once semiconductor technology is mastered, Vietnam can develop other technologies such as solar cell, LED and LCD, which are proper for green development”, Tuan noted.

A recent analysis showed that semiconductor sales in Vietnam would reach around $1.9 billion by 2012 with a steady annual growth rate of 23%.

“The country has some favorable factors, including a population of over 86 million, an economy growing at 7% to 8%, low wages, and a high number of fresh university graduates, which will help support an integrated circuit wafer fabrication industry” Tuan said.

Do Van Loc, head of the Ministry of Science and Technology’s High Technology Department, said Vietnam is set to give priority to manufacturing high-technology products, including IC products.

The government will offer incentives to foreign-invested technology companies to develop the IC industry. More laboratories will also be set up, he added.

So far, some global electronics giants like Sony, Samsung, and Canon has established strong manufacturing operations in Vietnam with revenues expected to grow to $11.4 billion in 2012.

Intel Vietnam invested $1 billion to build a chip assembling and testing plant in Saigon High-Tech Park in HCM City, marking its largest facility in the world. The factory will churn out the first batch of product in July.

Tags: Semiconductor Chip Plant, Vietnam infotech, Vietnam IT sector