Vietnam – A Rising Destination for IC Design in the Global Chip & AI Landscape

According to Nikkei Asia (republished by VietnamNews), Vietnam is rapidly emerging as a “magnet” for AI chip design, driven by its abundant young tech talent and competitive labor costs.

Notably:

• Alchip Technologies (Taiwan) — a provider of AI chip design services — is establishing its first R&D office in Vietnam and plans to expand its team to about 100 engineers within 2–3 years.

• Other companies such as GUC (General Universal Circuits) and Faraday Technology Corporation, both key design service providers for major foundries, are also moving operations to Vietnam to tap into local talent.

• Vietnam is viewed as a potential R&D hub for IC design due to its young engineering workforce, supportive R&D policies, strategic geographic location, and cost efficiency.

Vietnam’s Strategic Advantages:

• Attracting AI chip design companies to Vietnam is not only a “low-cost” story — it is about building a complete IC design ecosystem, from engineer training and international cooperation to developing domestic R&D centers.

• For the IC design industry, a skilled workforce is a decisive factor — Vietnam can leverage this advantage to deepen its participation in the global semiconductor value chain.

• For businesses and legal advisory organizations, establishing frameworks for recruitment, R&D support, international partnerships, and IP protection early will be vital to harness this opportunity.

Vietnam stands at a clear crossroads — poised to become a “design destination” as the AI and chip design revolution unfolds. Preparation across human capital, policy, and R&D infrastructure will determine whether Vietnam can seize this pivotal opportunity.

Source: “Vietnam turns into chip sector magnet with talent pool: Nikkei Asia,” Aug 14 2024.