Vietnam and Japan Strengthen Semiconductor Cooperation for Future Growth

The collaboration between Vietnam and Japan in the semiconductor industry is gaining momentum, with both nations recognizing the potential for mutual benefit. As this country seeks to regain its position as a global semiconductor powerhouse, Vietnam is emerging as a key partner in workforce development and technological cooperation. The recent visit of leading semiconductor enterprises from Kyushu, the country’s high-tech hub, underscores the growing importance of this partnership.

Kyushu’s Role in Reviving Japan’s Semiconductor Industry

Kyushu, often referred to as Japan’s “Silicon Island”, has historically played a vital role in the country’s semiconductor industry. At its peak, the region contributed to nearly half of the global semiconductor market share, making it a critical player in global supply chains. However, with shifting industry dynamics, the Land of the Rising Sun has faced increased competition from other semiconductor-producing nations.

Recognizing the need to revitalize its semiconductor sector, the government has committed to significant investments, with over $30 billion allocated to more than 100 projects, including a billion-dollar chip factory by Taiwan Semiconductor Manufacturing Company (TSMC). This ambitious plan places Kyushu at the center of the country’s semiconductor revival and highlights Vietnam as a strategic partner in achieving these goals.

Workforce Development: A Key Pillar of Cooperation

Japan anticipates a shortage of approximately 200,000 semiconductor engineers in the coming years, creating a strong demand for skilled labor. To address this gap, companies like Nisso Corporation, which specializes in providing engineering talent for manufacturing industries, have begun collaborating with Vietnamese universities. Their initiative includes inviting Vietnamese students to Japan for training and employment in semiconductor enterprises.

Nguyen Vinh Quang, CEO and founder of FPT Semiconductor, has introduced two key initiatives aimed at fostering Vietnam-Japan cooperation in the industry. The first focuses on education and training, with a goal of producing 50,000 semiconductor engineers in Vietnam by 2030. This will be achieved through various programs, including the establishment of a semiconductor microchip faculty at FPT University, the recruitment of 1,000 students annually, and the launch of co-innovation spaces in Hanoi and Danang.

Strategic Investments and Innovation

Japan’s Ministry of Economy, Trade, and Industry has outlined an extensive semiconductor development plan, with an initial $10 billion investment by 2025 aimed at revitalizing the industry. Over the next decade, an additional $330 billion will be allocated to semiconductor-related projects, integrated with artificial intelligence (AI) development and local capacity enhancement. By 2030, these investments are expected to generate over $1 trillion in economic value for the country.

Vietnam, on the other hand, has been actively positioning itself as a prime destination for semiconductor investment. The National Innovation Center (NIC) has been collaborating with Hiroshima University and other institutions to send Vietnamese students abroad for specialized training in semiconductor technology. These efforts have already yielded positive outcomes, with Vietnamese engineers contributing to semiconductor production lines in Japan.

Strengthening Bilateral Ties

The Vietnam-Japan Semiconductor Cooperation Program, organized by NIC in partnership with the Japanese Embassy, has brought together key stakeholders from both nations, including research institutions, universities, semiconductor companies, and financial organizations.

Japanese Deputy Ambassador to Vietnam, Ishikawa Isamu, emphasized the complementary strengths of the two nations. While Japan leads in semiconductor technology and manufacturing, Vietnam possesses a young and dynamic workforce eager to develop expertise in this high-tech field.

A Shared Vision for the Future

The partnership between the two countries in the semiconductor industry represents a win-win scenario. With Vietnam’s expanding talent pool and Japan’s technological expertise, both nations stand to benefit from enhanced cooperation. As enterprises continue to explore opportunities in Vietnam, they are committed to supporting the country’s semiconductor industry through knowledge transfer, training programs, and joint research initiatives.

As one Japanese legislator aptly put it, ‘If you want to go fast, go alone. If you want to go far, go together.’ This philosophy underpins the strengthening ties between the two countries, paving the way for a new era of collaboration in high-tech industries, particularly in semiconductors.

Sources: Various sources