What makes Vietnam want Samsung to soon produce chips without producing it itself?

At the ceremony, Prime Minister Pham Minh Chinh said that Samsung’s R&D Center is an example of the close cooperation between Vietnam and Korea over the past 30 years. The Prime Minister also hopes that after having a new center, Samsung will conduct chip production in Vietnam, helping to complete the goal of closing the production chain in the domestic electronics field.

“We hope that the corporation will quickly prepare the necessary conditions for early trial production of semiconductor chip grid products, striving to achieve the target of mass production from July 2023 at Samsung Thai Nguyen factory,” he said. Prime Minister Pham Minh Chinh said. The Prime Minister also said that this is a way for Samsung to show responsibility for its commitments in the investment process.

Samsung is a very bright corporation in the field of chip manufacturing, because this group is promoting investment in the chip manufacturing industry. In 2020, Samsung Electronics announced its goal of becoming the world’s No. 1 logic chip manufacturer by 2030, by investing 133 trillion won in the field.

In Vietnam, the semiconductor chip manufacturing industry is considered a foundation to support and promote the development of other industries, contributing to promoting economic development in depth. This is also an area that is being identified by the Government for investment.

According to the Vietnam Automation Association, although Vietnamese scientists have successfully researched and designed the chip, so far it is still only on the laboratory scale, without a large-scale production plant.

The Ministry of Information and Communications said Vietnam is promoting investment in chip production to develop the digital economy.

Currently, Vietnam still does not really have a factory producing microchips (electronic chips). Chip manufacturing enterprises from abroad investing in Vietnam mostly carry out the main stages of microchip design processing or assembly and testing.

In fact, the Vietnamese microchip industry is still a long way from developed countries. Vietnam can hardly compete with the world’s leading corporations such as Intel, Qualcomm, Samsung, Sony, Toshiba, … with chip lines that have had many years of development and application in high-end products such as computers. computers, smart phones, smart TVs.

According to The Washington Post, to build a large chip factory requires an investment of several tens of billions of dollars, mainly in specialized equipment. Currently, the three largest chip manufacturers in the world, Intel, Samsung and TSMC (Taiwan) account for the majority of total investment in the world chip industry, with each of their factories having more investment. 20 billion USD.

Therefore, to invest in a chip factory requires huge capital. Therefore, Vietnam cannot invest all alone, but needs to call on investors around the world to take advantage of their available advanced technologies.

Accordingly, calling for major chip manufacturers in the world to come to Vietnam to invest in building chip factories will support the chip manufacturing industry in Vietnam.

Currently, Vietnam is also very eager to attract investment in the field of chip manufacturing. Up to now, Vietnam has been invested by large chip manufacturing corporation Intel in the US to build a chip factory of more than 1 billion USD in Ho Chi Minh City.

Besides, Vietnam also received investment in chip manufacturing industry from chip maker Renesas (Japan), Applied Micro (USA), … but the project scale is still small.