Microchip is indispensable for industry

Microchip is a basic industrial product used as component in computers, mobile phones, motorcycles, cars, electronic appliances, scientific and medical equipment, industrial and agricultural machines

The Japanese calls microchip "Sangyo no kome" which means rice for industry because Japan's successes in microchip designing and manufacturing has led to an improvement of the country's entire science and technology.

Major microchip manufacturers in the US and Japan are thriving and many microchip manufacturers in other countries and territories in Asia including the Republic of Korea (RoK), Taiwan, Singapore, Malaysia and China are more and more interested in this industry. For example, the number of Chinese microchip designing and manufacturing companies have increased from 15 companies in 1990 to more than 470 companies in 2009 and probably to 600 companies this year.

In Vietnam, Hanoi University of Technology, Military Technical Institute, Academy of Telecommunications Technology, University of Engineering and Technology, Vietnam National University Integrated Circuit Design Research and Education Center (ICDREC), Active - Semi Vietnam Co., and Vietnam Intel Corporation have focused on training their staff in microchip designing and manufacturing. The Saigon Industry Corporation has recently submitted the project for the first US$200-300 million microchip fabrication plant in Vietnam, which will probably be completed in three years.

ICDREC Director Ngo Duc Hoang revealed, "We have been able to design microchip but unable to fabricate the designed domestically as we still do not have any microchip fabrication plant. We have received orders from the Ministry of Science and Technology for 350,000 micro-processors to be integrated into motherboards in cell phones and communication devices. By ICDREC's rough reckoning, an imported micro-processor may cost between US$4-5, but it will cost less than one dollar if being fabricated domestically. The demand for microchips in Vietnam will go up this year and may reach US$ 2 billion in value at prediction. Both local and foreign investors in microchip development are waiting for government incentives."

RoK's experience in microchip fabrication

At a press conference on microchip designing held by the Ministry of Science and Technology on May 29 at the Hoa Lac Hi-Tech Park, Professor Dang Luong Mo, Science Advisor at the Vietnam National University-Ho Chi Minh City (VNU-HCM) and world famous microchip scientist said that Vietnam made successes in designing microchips but could not fabricate them domestically. It was advisable that local companies should look for foreign reliable microchip manufacturers

Professor Dang Luong Mo gave an example of Korean companies that began with assembling microchips for foreign companies and gradually became engaged in microchip fabrication, based on its highly qualified human resources, low labor costs, domestic available market, and state support mechanisms.

"Vietnamese microchip companies are favored with the same conditions as Korean companies and should do almost the same things. Microchip companies in Vietnam can recruit a high number of Vietnamese young people graduated from colleges and university without difficulty as they are accounting for a large percentage of local work forces. In addition, Microchip companies in Vietnam can find out potential collaborators among more than 7,000 Vietnamese workers who are involved in microchip designing and manufacturing in Japan and the US," he said.

According to Professor Dang Luong Mo, prospects for microchip investment in Vietnam is bright as its application in other high-tech industries, especially cell phone manufacturing, is increasing. Local microchip producers should not concern over the domestic market but should give special attention to product design and manufacture processes. A prototype microchip fabrication plant is about to be deployed at the Saigon Hi-Tech Park, led by the overseas Vietnamese who came back from the Silicon Valley in the US.

 Indian Minister of Communications and Information Technology was officially renamed the Information Technology Division of the ministry to Electronics and Information Technology Division, highlighting the importance of electronic industry in Indian economy. India has seen that a developed electronic industry, with semiconductor chips as main products, will be able to attract 28 million local workers and valued at US$400 billion.

 "If Vietnam targets to develop electronic industry and creates favorable conditions for microchip investors, local electronic industry may attract up to two million workers and be worth of US$25-26 billion," said Professor Dang Luong Mo./.