VietNamNet Bridge – HCM City has shown its determination to develop the IC industry by kicking off an ambitious IC development program. However, scientists have warned that it would be utopian to strive to become competitive with the IC powers in the world.

Scientists believe that with the available resources, it would be utopian for Vietnam to strive to compete with the powers like the US, Japan and South Korean in the IC technology.

“Forget that ambition,” said Ngo Duc Hoang, Director of the ICDREC, the IC Development, Research and Education Center under the HCM City National University at an international conference on IC technology held in HCM City on August 23-34.

IC development is an industry that requires profuse resources of intelligence and capital. Meanwhile, Vietnam has lagged behind the world for tens of years. Therefore, it would be impractical to strive to compete with other IC powers.

360 million dollar budgeted for IC industry development

Hoang said that the HCM City People’s Committee has agreed in principle to implement the IC development program in HCM City. The program comprises of four component projects, including the one on human resource training, business incubator, design and production in a trial basis, advertisement and launching into the market. A design center and a chip manufacturing plant would also be built and run within the frame of the program.

Of the component projects, the chip production plant would be the focus, which is expected to gobble up to 200 million dollars.

However, analysts believe that the sum of money would be big enough to buy an old technology production line (180 nanometers) which has the capacity of 300 million chips a year.

The problem does not lie in the capital arrangement. The Saigon Industry Corporation has promised to provide the capital needed. However, everything has been going slowly due to the procedures problems.

A question was raised at the conference that why the program designers did not set up higher goals for the program that the city would export one billion dollar worth of exports for the IC industry by 2017.

Hoang, who is a member of the steering committee of the program, answered that the city only has money to buy middle brow technology, therefore, the program designers have only set up the goal they think attainable: obtaining 100-150 million dollars worth of exports.

“It would be impractical to compete with the big names like Intel,” Hoang said.

Mike Holt, Deputy Chair of the Singaporean Semiconductor, said that the plan may consider developing a lot of different products while no need to utilize the most advanced technology.

He believes that what Vietnam needs to think about now is to decide the products to be made for the market. Even if Vietnam uses the 180 nanometer technology, it would still be able to develop well, if it can create differences.

What products does the market need?

The expert thinks that the Vietnamese market is a potential market for the chip products made on basic technologies.

The products, according to Le My Phuc from Global Cybersoft, could be the identity cards, electronic license, RFID chips utilized in many fields of daily life, simcards for mobile phones, or smart phones.

As for simcard products alone, nearly 100 million products would be consumed a year. Meanwhile, about 70 million people are at the age of using identity cards.

Hoang said except the products serving daily life, chip products can also be used for the national defense.

C. V