Photo: Chairman of the Vietnam Automation Association Dr Nguyen Quan, who is also former Minister of Science and Technology (Photo: VietnamPlus) Hanoi (VNA) - If Vietnam only focuses on manufacturing and assembling, it will never establish a robust and complete semiconductor industry, according to Chairman of the Vietnam Automation Association Dr. Nguyen Quan, who is also former Minister of Science and Technology.
According to Gartner's report, global semiconductor revenues went 1.2% higher in 2022 to 601.7 billion USD. The market is forecast to be about 1,400 billion USD in size by 2029.
Joining the global semiconductor market, Vietnam will have billion-dollar opportunities. By 2024, Vietnam's semiconductor industry is predicted to exceed 6.16 billion USD in value
Quan has recently spoke with the Vietnam News Agency’s VietnamPlus e-newspaper about the country's enormous potential in semiconductor development.
Reporter: Vietnam has been considered a country with a rapidly evolving semiconductor ecosystem. Could you tell us about the primary challenges Vietnam is facing to develop the semiconductor industry?
Dr. Nguyen Quan: The biggest difficulty in developing Vietnam’s semiconductor sector is investment, as it is considered a high-tech, elite industry.
After the design phase, extensive testing and experimentation labs are required, making chip design a costly endeavour. Currently, Vietnam lacks these facilities and must resort to expensive overseas testing laboratories.
Furthermore, when it comes to production, chip manufacturing plants demand substantial investments. Additionally, we must invest in clean production lines, as chips require an exceptionally clean manufacturing environment. Advanced technologies such as robotics and automation also come at a high cost.
The second major challenge is our lack of self-reliance on input materials, especially in the electronic materials industry, particularly high-tech materials used in electronic component production. Currently, we are heavily dependent on imported materials. In the long term, we must work towards self-sufficiency in sourcing materials for chip production.
Reporter: Vietnam has two paths to develop the semiconductor industry: expanding manufacturing or enhancing capabilities and values in design and packaging. Which direction should we pursue?
Dr. Nguyen Quan: Vietnam should follow the path taken by successful countries and territories such as Taiwan (China), the Republic of Korea, and China, which is to prioritise design as the most critical stage.
If we only focus on manufacturing and assembling for other nations, we will never establish a comprehensive and thriving semiconductor industry.
Illustrative image (Photo: VNA) Therefore, Vietnam must take the route of becoming a leader in semiconductor design from the very beginning. Subsequently, we should focus on testing and large-scale production. Concurrently, we need to develop the electronic materials industry, ensuring a stable supply of materials for chip and semiconductor manufacturing.
Reporter: We witnessed cooperation in the field of technology and innovation between Vietnam and the US. As a former Minister of Science and Technology, how do you assess the opportunities for Vietnam?
Dr. Nguyen Quan: The cooperation programme in science and technology with the US has been in place for many years, dating back to the normalisation of relations between the two countries.
Vietnam signed agreements with the US on cooperation in science and technology. Every year, we have exchanges between delegations of scientists from both nations.
The US has also established the Vietnam Education Foundation (VEF) to provide training for thousands of high-level science professionals in Vietnam, many of whom have returned and made significant contributions to the country's science and technology.
With President Joe Biden's visit in September, I believe a new chapter in scientific and technological cooperation between the two countries has opened.
Among the four areas of cooperation that the US is focusing on with Vietnam, the field of science and technology is of great interest. The US said it hoped that Vietnam could become a strong nation in the electronics and semiconductor industry.
Vietnam has great potential, not only in terms of a skilled workforce but also in its exposure to the electronics and semiconductor industry for 15 years. However, due to various factors, especially investment and technical support, we have not yet fully developed a genuine electronics and semiconductor industry.
I believe that with the support of the US in terms of resources and technology, we can develop the electronics and semiconductor industry. This is a high-value-added industry, as a semiconductor chip can be worth more than many tonnes of rice.
We can master high technology and enhance our economic efficiency. We can also become a significant player in cooperation with the US in the Southeast Asian region.
Reporter: In the field of semiconductor chip design, Vietnam currently has around 30 active companies with over 5,000 highly skilled engineers. If we look five years ahead, we will need 20,000 engineers, and in ten years, we will need up to 50,000 engineers. Do you think Vietnam's human resources are genuinely in short supply, and does Vietnam have the capability to train the workforce to keep pace with this emerging industry?
Dr. Nguyen Quan: Vietnam indeed has the potential for a high-tech workforce. However, the development of our human resources in any field depends on the needs of the economy and government directives.
One thing to note is that for many years, we haven't paid much attention to the electronics and semiconductor field. Consequently, university programmes in this area have not attracted many students.
Looking at the potential of our people, those in the fields of electronics and information technology, we are entirely capable of becoming experts in semiconductor and electronics design. If we currently have 5,000 engineers, I believe that number is acceptable. We've also learned that the enrolment targets for programmes related to electronics and semiconductors at universities have increased.
Vietnamese universities have a tradition of training in information technology and software, computer science, and hardware. If these human resources receive additional training in a short-term conversion programme, they can fully meet the requirements of the semiconductor and electronics industry.
Training around 50,000 individuals to work in the semiconductor field is not an overly ambitious goal, says Dr. Nguyen Quan (Photo: VietnamPlus). I think training around 50,000 individuals to work in the semiconductor field is not an overly ambitious goal. In the next ten years, I believe we can achieve that. The issue lies in how our products will be commercialised, to what scale they will serve the development needs of Vietnam, or whether they will cater to the regional or global market.
This, again, depends on the market and can be determined by major electronics corporations, such as Samsung or Intel. They will decide how our semiconductor chips will be consumed.
If we collaborate effectively with large companies and major nations, we can undoubtedly develop the semiconductor industry to the extent we project.
Reporter: Thank you very much./.
