Mr. Kevin Koh of Faraday Technology (Taiwan) assesses that Vietnam is well-suited for the production of AI chips using 12-14nm process technology.
"Vietnam faces a major opportunity in semiconductor manufacturing—including AI chips using the 12-14nm process and a move toward Application-Specific Integrated Circuits (ASICs)," said Mr. Koh, the Vietnam market director for Faraday Technology—a chip design and semiconductor IP company—at the launch event for iTech Expo 2026 in Ho Chi Minh City on August 18.
According to Koh, the global semiconductor industry is undergoing fundamental shifts in its power structure. Citing data "current as of last weekend," he noted that forecasts regarding chip supply shortages have shifted from 2027 to 2030. Chip foundries are currently operating at 90–100% capacity, not only for advanced processes below 5nm but also for mature processes like 28nm or 40nm.
"The AI boom has sparked a fierce hardware race," Koh said. "ASICs have emerged as an inevitable path to address semiconductor shortages and the need for performance optimization that surpasses general-purpose chips."
An ASIC (Application-Specific Integrated Circuit) is a microchip designed for a specific purpose or application, unlike general-purpose chips such as CPUs or GPUs. According to Koh, processes of 7nm and below are prohibitively expensive and difficult to access, while the 28nm process is mature but beginning to show inefficiencies regarding power consumption in the context of new technologies. Consequently, the 12-14nm range has become the "sweet spot"—balancing performance, power efficiency, and cost - while also aligning with Vietnam's manufacturing capabilities.
Mr. Kevin Koh, Faraday Technology’s Director for the Vietnam market, speaks at the event. Photo: Bao Lam
However, the Faraday Technology expert suggests that Vietnam should not chase the production of mainstream ASIC chips but instead focus on chips for Edge AI and Endpoint AI. While industry giants concentrate on primary processing chips, they leave a significant gap in the market for supporting chips—such as those for PCIe, DDR, or networking.
"This represents the most viable 'breakthrough opportunity' for Vietnamese enterprises to enter the AI chip supply chain," Mr. Koh asserted.
To integrate into the complete chip manufacturing process, he proposes a three-tiered "1,000-200-10" strategy. At the base level (Endpoint AI), Vietnam needs to establish over 1,000 enterprises focusing on this segment; the lower R&D and market entry costs make it well-suited to the financial capabilities of Vietnamese businesses.
From these 1,000 Endpoint AI enterprises, he expects about 200 to achieve a breakthrough and form the middle tier, accumulating sufficient capital to upgrade and invest more deeply in the Edge AI sector. Finally, the top tier would identify and nurture around 10 leading enterprises capable of designing AI chips.
For Vietnamese enterprises aiming to produce commercial chips within the next one to two years, he recommends opting for Application-Specific Standard Products (ASSP) or semi-custom chips rather than fully custom designs, given that silicon delivery times currently extend up to 12 months.
According to the expert, the capabilities of Vietnamese engineers have already been proven to a certain extent. He cited the example of Faraday, which finalized and submitted the physical design file for its second-generation GDS (Graphic Data System) chip for testing on August 17. The entire physical design process for this 28nm AI chip was carried out by a team of 400 Vietnamese engineers, thereby demonstrating that the technical capabilities of the local workforce meet global standards.
Mr. Nguyen Van Hieu, Chairman of the Ho Chi Minh City Semiconductor Industry Association (HSIA), speaks at the event. Photo: Bao Lam
Associate Professor Dr. Nguyen Van Hieu, Chairman of the Ho Chi Minh City Semiconductor Industry Association (HSIA), agrees that the quality of Vietnam's semiconductor workforce has improved recently. However, he also highlights issues that need to be addressed in the near future.
For instance, he views the goal of producing 50,000 semiconductor engineers by 2030 not merely as a forecast, but as a "general mobilization" effort; however, training must be aligned with actual market demand to avoid the risks of unemployment and associated social consequences.
"Universities are rushing to launch semiconductor programs. Students in their first, second, or third years face no immediate issues. But by their final year and upon graduation, if the market lacks enough companies to absorb this workforce, they will face unemployment, creating a highly negative social backlash," he observed.
The HSIA Chairman proposes implementing training programs for design engineers based on actual needs. For example, the "Train-the-Trainer" (ToT) program currently being rolled out by the semiconductor company Synopsys holds promise for cultivating the "seeds" needed to replicate and expand the workforce to the target of 50,000 engineers.
Regarding the current strategic direction, Mr. Nguyen Van Hieu advises against hastily chasing the development of ultra-small, exorbitantly expensive central processing unit (CPU) chips. Instead, Vietnam should focus investment on producing sensors, memory cards, and simpler semiconductor devices that still meet significant market demand. These projects require factory investments of under one billion USD but offer immense practical application potential—such as in traffic surveillance cameras, hydrometeorological monitoring equipment, natural disaster warning systems, tidal monitoring, and agricultural and forestry automation. "The government needs to take the lead by placing direct, large-scale orders—ranging from hundreds of thousands to millions of sensor chips—to incentivize private enterprises to invest capital and engage scientists in the product commercialization process," he proposed.
The iTech Expo 2026 technology exhibition is taking place from September 30 to October 2 in Ho Chi Minh City under the theme "New Tech, Innovation Unleashed." Organized by the Ho Chi Minh City Computer Association (HCA) and Alta Media, the event is sponsored by the Ministry of Science and Technology and the Ho Chi Minh City People's Committee. Unlike the first two editions, which focused solely on software, this year's event expands its scope to include specialized hardware, smart devices, and the chip, microcircuit, and semiconductor ecosystem.
Bao Lam
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