Japanese semiconductor firms considering investment in Vietnam

The company is considering building semiconductor factories in Japan and other countries, including in the Middle East and Vietnam, its CEO, Yoshitaka Kitao told visiting Prime Minister Pham Minh Chinh in Tokyo on Saturday morning.

“We want to partner with big companies in Vietnam in the information technology sector, such as FPT, to establish an ecosystem for semiconductor manufacturing.”

SBI is a major Japanese firm with interests in new technologies such as semiconductors, services, and biotechnology.

Yoshitaka asked the PM about Vietnam’s policies on foreign investment in semiconductor manufacturing since many companies, including from the U.S. and Taiwan, have been considering setting up factories in the country.

Vietnamese Prime Minister Pham Minh Chinh speaks to Japanese business leaders on Dec. 16, 2023 in Tokyo. Photo by Nhat Bac

Japanese semiconductor manufacturer Renesas Electronics has invested in a research and development facility with 1,500 Vietnamese workers, 60% of them software engineers.

Vietnam is among the top priorities in Renesas’ foreign investment strategy, a company spokesperson said.

Kazuhiro Doh of another Japanese semiconductor maker Tokyo Electron asked Chinh about Vietnam’s policy on human resource development to meet the requirements of a precision manufacturing sector.

Chinh said Vietnam is in the process of industrializing through new technology developments such as semiconductor manufacturing.

“Digital transformation is inevitable, and Vietnam cannot be left out of the race. Semiconductors will help the country leap to the top in technology development.”

Vietnam is a safe haven amid the global storm thanks to its political and security stability, he said.

He called on Japanese firms to invest and eventually transfer their technology to Vietnam and help the country develop high-quality human resources.

The country is considering various incentives to encourage investment in semiconductors, he said. One of the areas it is studying is how to convert its one million IT engineers to one million semiconductor engineers.

“We want breakthroughs and rapid development, and will therefore have policies to attract the top investors in this area.”

He expected Vietnam to eventually become part of Japan’s semiconductor supply chain alongside India and China.

Chinh is in Japan from December 15 to 18 to attend the ASEAN-Japan 50th Anniversary Summit. This year Vietnam and Japan also celebrated the 50th year of bilateral diplomatic relations.

The two upgraded their relationship to a Comprehensive Strategic Partnership in November this year.

Japan is among Vietnam’s most important economic partners, ranking first in providing official development assistance, second in admitting Vietnamese guest workers, third in investment and tourism, and fourth in trade.