FPT Semiconductor to Collaborate with Korean Businesses to Embrace the Semiconductor Wave

Mr. Tran Dang Hoa, Chairman of FPT IS and Chairman of FPT Semiconductor (FPT's subsidiaries), discussed initiatives to enhance semiconductor cooperation between Vietnam and Korea during the Vietnam - Korea Semiconductor Industry Cooperation Conference held in Hanoi on August 6, 2024.

Mr. Tran Dang Hoa highlighted the burgeoning opportunities within Vietnam's semiconductor industry, noting its growing prominence in the global technology flow, which has passed through the US, Japan, Taiwan, China, and Korea. He expressed strong confidence that Vietnam, as a latecomer in the semiconductor field, is poised to significantly impact the supply chain. An added advantage is Vietnam's inclusion among the seven countries eligible for support under the US Chips Act, which will aid production development and human resource training.

FPT has been involved in the semiconductor industry in Vietnam for over a decade. By 2022, the Corporation established FPT Semiconductor and successfully secured orders for 70 million chips from Taiwan, Korea, Australia, Singapore, and Japan.

Mr. Tran Dang Hoa noted that FPT Semiconductor has strategically focused on niches that align with Vietnam's strengths and the company's capabilities. The primary focus is on developing power chip products, where FPT Semiconductor excels in customization, assembly, and fine-tuning according to customer needs, enabling the company to gain market dominance rapidly.

FPT Semiconductor also concentrates on developing and supplying IP libraries and "standard cells" for clients. Additionally, the company has recently ventured into the OSAT (Outsourced Semiconductor Assembly and Test) sector, which has a high demand for chip testing. FPT Semiconductor plans to establish an OSAT facility to collaborate with partners in this growing field.

Finally, FPT Semiconductor is leveraging Vietnam's vast pool of young engineers, trained within the FPT system and leading Vietnamese universities, to offer outsourcing services. As interest in the semiconductor field wanes among younger generations in other countries, this represents a significant opportunity for Vietnam's emerging workforce.

Mr. Tran Dang Hoa, Chairman of FPT IS and Chairman of FPT Semiconductor (FPT's subsidiaries), at the event.

FPT has established a comprehensive chip training system that spans universities, colleges, and short-term programs, including collaborations with top international Vietnamese experts. The Corporation partners with global universities, offering students the chance to study both in Vietnam and abroad, as well as opportunities to gain practical experience with foreign businesses.

Mr. Tran Dang Hoa outlined FPT Semiconductor's strategic focus in the Korean market, highlighting their intention to introduce power chip products to Korean clients. The company aims to collaborate with Korean partners to establish OSAT services in Vietnam and offer outsourcing solutions to address the shortage of engineers in Korea's semiconductor industry. Additionally, FPT Semiconductor is keen on partnering to develop high-quality human resources, aiming to integrate Vietnamese engineers into Korea's future semiconductor market.

"FPT Semiconductor envisions becoming a major player in the next decade, focusing on independently designing a diverse range of chips, particularly in the AI sector," Mr. Hoa affirmed. Since establishing a presence in Korea in 2016, FPT has collaborated with prominent businesses such as LG, SK C&C, Hanwha, Shinhan Bank, and Shinsegae I&C. FPT is enthusiastic about the potential for further partnerships with Korean companies, aiming to collectively capitalize on future opportunities in the semiconductor industry.