Đà Nẵng Aims to Become Vietnam’s Hub for Semiconductor, Microchip, and AI Development

Da Nang’s Strategic Plan for Advanced Technology Leadership

On June 1, a significant workshop was convened by the People’s Committee of Da Nang to discuss the “Development of Semiconductors, Microchips, and Artificial Intelligence” initiative. Leading experts from various sectors, including government ministries, scientists, university leaders, and managers, joined forces to solidify the city’s ambition to become the national center for these advanced technologies.

The Director of the Department of Information and Communications in Da Nang, Dr. Nguyen Quang Thanh, referenced a political bureau’s directive issued on May 13, 2024, which emphasizes the development of Da Nang through the year 2045. It specifically calls for prioritizing investment resources in scientific and technological infrastructure, fostering innovation and startups, and efficiently utilizing information technology industrial parks and software parks, all to propel the advance of IT, electronics, telecommunications, IoT, AI, big data, and semiconductor microchips.

Within the first five months of 2024, Da Nang has established connections and engaged with 22 large businesses and organizations in the semiconductor, microchip, and AI sectors. Notably, Marvell Technology Group from the USA announced the establishment of a new office in Da Nang with 50 software design engineers, and Synopsys inaugurated a new office with nearly 300 chip design engineers, projecting an increase to 400 in the next few years.

Deputy Chairman of Da Nang People’s Committee, Ho Ky Minh, highlighted ongoing support for the United States Enterprises’ semiconductor material manufacturing plant by Hayward Quartz Technology, with an investment license already issued for the High-Tech Park, amounting to 110 million USD.

Furthermore, Ho Ky Minh revealed that the government passed a decree allowing Da Nang to utilize the IT infrastructure of Software Park No. 2 for rent to microchip, AI, and IT companies. Expected to launch in late 2024, this park will feature an ICT building and two other edifices starting in early 2025, providing a resourceful working environment for 6,000 professionals in what’s anticipated to become Da Nang’s very own “Silicon Beach.”

Relevance of Đà Nẵng’s Technology Ambitions

Đà Nẵng’s drive to become a hub for semiconductor, microchip, and AI development is aligned with global trends that see nations and cities vying for leadership in advanced technologies. With the increasing reliance on these technologies for economic growth and national security, Đà Nẵng’s strategy contributes to the broader Vietnamese goal of transitioning from a low-tech manufacturing base to a high-tech economy.

Key Questions and Answers:
Why is Đà Nẵng focusing on advanced technologies like semiconductor and AI? Đà Nẵng is focusing on these technologies to stimulate economic growth, attract foreign investment, and create high-skilled jobs.
What kind of support has the government provided? Besides the decree allowing rental of IT infrastructure, it has issued investment licenses and is actively supporting infrastructure development for high-tech industries.
How does Đà Nẵng attract businesses and experts in these fields? The city has engaged with large companies through incentives and established connections with various stakeholders in the first five months of 2024.

Key Challenges and Controversies:
One of the primary challenges for Đà Nẵng is the requirement for a skilled workforce to sustain the growth of sophisticated industries like semiconductors and AI. Additionally, competition with established hubs around the world poses a significant challenge. There is also the need to ensure that the development of such technology sectors does not widen the income gap or contribute to environmental issues.

Advantages and Disadvantages:
The advantages of Đà Nẵng’s initiative include:
– Diversification of the local economy
– Job creation in high-tech sectors
– Attraction of foreign direct investment

The disadvantages might involve:
– The need for substantial investment in education and training
– Possible displacement of traditional industries
– Dependency on the global market, which could affect local stability during economic downturns

Related Links:
– For information on Vietnam’s strategic technological development, visit Vietnam’s Ministry of Science and Technology.
– To learn more about global semiconductor trends, visit the website of Semiconductor Industry Association.

In conclusion, Đà Nẵng’s advancements in technology have the potential to set a benchmark in Vietnam’s economic and industrial development. With strategic planning and international collaboration, Đà Nẵng aspires to be at the forefront of the technological revolution that is reshaping global economies.

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