Ho Chi Minh City (VNA) – Ho Chi Minh City is stepping up efforts to attract investment from global leading groups and companies in the fields of electronic components, semiconductors and chip manufacturing as it seeks to position itself as a leading semiconductor industry hub in both the region and the world.
Under Plan No. 98, issued on March 16, the city is implementing Vietnam’s semiconductor industry development strategy alongside a national workforce development programme for 2026. The initiative moves beyond investment attraction, focusing on building a fully integrated ecosystem covering research and development (R&D), human resource training, innovation and start-up incubation in microchip and semiconductor technologies.
A central component of the plan is expanding cooperation with global technology leaders such as AMD, NVIDIA and Qualcomm. These partnerships are expected to support technology transfer, strengthen chip design capabilities and help the city move further up global semiconductor value chains.
Ho Chi Minh City also aims to attract at least four foreign direct investment (FDI) projects in the semiconductor sector, prioritising environmentally sustainable, high value-added ventures with strong economic spillover effects. To support these ambitions, the city plans to establish an international-standard semiconductor research centre, expand university-based microchip laboratories and develop a national shared laboratory at Vietnam National University, Ho Chi Minh City. The high-performance computing centre at Quang Trung Software City will be upgraded to serve chip design and artificial intelligence applications, while Saigon Hi-Tech Park will be expanded into a high-tech urban area anchored by a large-scale semiconductor industrial complex.
Meanwhile, the proposed “Science and Technology City – Northern Ho Chi Minh City”, spanning roughly 1,000 ha, is expected to provide long-term infrastructure for the development of this strategic high-tech sector.
Recognising human resources as a decisive factor, the city plans to train 1,500 specialised semiconductor professionals in 2026 and enroll around 3,300 additional university students in related fields. At least 300 workers will benefit from reskilling and upskilling programmes to meet the industry's rising demand. A 5-million-USD microchip design human resource development fund will also be launched to finance scholarships, research activities and the attraction of domestic and international experts.
Vice Chairman of the municipal People’s Committee Nguyen Manh Cuong said the city’s semiconductor ambitions are built on three pillars: policy, technology and human resources.
In investment attraction, Marvell Technology has opened two new offices, making Ho Chi Minh City its third-largest global R&D hub, while Dutch firm BE Semiconductor Industries has secured approval to increase its investment by 42 million USD.
On the domestic front, CT Group has begun phase two of its chip packaging and testing facility with a targeted annual capacity of 100 million chips, while VNChip has launched a research laboratory meeting Cadence Design Systems standards.
Prof. Dr Vo Xuan Vinh, Dean of the Institute of Business Research at the University of Economics Ho Chi Minh City, suggested the city could draw lessons from established global technology hubs when designing policies to attract major investors.
He pointed to Yokneam Illit in Israel, often described as a “start-up village,” as a successful model driven by strong incentives, including tax reductions during the first decade of operation and government equity participation of at least 20%. The city’s high-tech zone now hosts hundreds of technology firms generating billions of US dollars in annual export revenue.
In Asia, cities in the Republic of Korea such as Yongin and Pyeongtaek have established a 20-billion-USD support fund for semiconductor enterprises through tax incentives and land-rent reductions for both domestic and foreign investors. In the US, states including Kansas, Arizona and Texas allocate between 300 million USD and 400 million USD each year to support technology start-ups.
According to Vinh, a sustainable semiconductor industry must extend beyond design, packaging and testing to include suppliers, input materials, logistics, finance and economic governance. Development strategies should therefore focus on building a fully integrated ecosystem combining technological capacity with strong economic and financial foundations.
He added that semiconductor development should not be limited to workforce training for foreign firms or academic cooperation alone. Instead, the city needs a long-term, multi-stakeholder strategy, particularly involving financial and economic sectors, to mobilise investment capital. Strong linkages between scientific research, innovation, universities and R&D centres, supported by capable financial and business expertise, will be essential to sustaining long-term growth./.
VNA
