Da Nang, a bustling coastal city in central Vietnam, is positioning itself as a cornerstone of the country’s high-tech future. With a strategic goal to become one of Vietnam’s top three semiconductor and microchip hubs by 2030, the city is rolling out sweeping initiatives to attract major investments, develop cutting-edge infrastructure, and cultivate a skilled workforce. This push aligns with Vietnam’s national semiconductor industry development strategy, which envisions a robust ecosystem by 2050, and underscores Da Nang’s determination to drive economic transformation through technology and innovation.
A Strategic Vision for Economic Growth
At the heart of Da Nang’s ambition is a target for its digital economy to account for 35-40% of the city’s Gross Regional Domestic Product (GRDP) by 2030. This is no small feat for a city traditionally known more for its tourism and trade than for high-tech industries. Yet, municipal leaders are betting on the semiconductor sector—a critical component of modern electronics, from smartphones to artificial intelligence (AI) systems—as a catalyst for sustainable growth. The city’s plan includes attracting at least 5,000 high-quality semiconductor professionals by the end of the decade, a workforce intended to serve not only local needs but also other regions of Vietnam and international partners.
The semiconductor industry, globally valued at over $500 billion annually, is a linchpin of technological advancement. For Vietnam, a country rapidly emerging as a manufacturing powerhouse, capturing a slice of this market could redefine its economic trajectory. Da Nang’s focus on becoming a hub for semiconductor design, testing, and packaging aligns with national priorities outlined in the Politburo’s Resolution No. 57-NQ/TW, which emphasizes science and technology as drivers of development. By integrating into the global supply chain for chips—vital for everything from automotive systems to data centers—Da Nang aims to elevate Vietnam’s standing in the high-tech arena. 
Pioneering Infrastructure with VSAP LAB
A key milestone in this journey is the recent groundbreaking of a state-of-the-art laboratory by VSAP LAB Joint Stock Company at the Concentrated Information Technology Zone of Da Nang Software Park 2. With an investment of 1.8 trillion Vietnamese Dong (approximately US$68.8 million), this facility—spanning 2,288 square meters—marks Vietnam’s first foray into advanced semiconductor packaging technologies. Set to commence operations in the fourth quarter of 2026, the lab is designed to produce 10 million products annually, targeting both domestic and international markets.
Advanced packaging, a critical stage in semiconductor production, determines the efficiency, size, reliability, and cost of chips. Unlike earlier stages like design or manufacturing, packaging has emerged as a bottleneck in the global supply chain. Nguyen Bao Anh, CEO of VSAP LAB JSC, highlighted this challenge, noting that the industry’s current struggles lie not in creating chips but in packaging them effectively for cutting-edge applications. The Da Nang facility will focus on innovative techniques such as RDL Fan-out, 2.5D, and 3D packaging, which are essential for AI chips, high-performance data center components, and next-generation electronics.
This project is more than just a factory; it represents a novel public-private partnership model in Vietnam. The lab will integrate research, production, testing, training, and technology transfer, creating a comprehensive ecosystem for semiconductor innovation. Luong Nguyen Minh Triet, Chairman of the Da Nang People’s Committee, emphasized the city’s commitment to supporting the project with favorable infrastructure and administrative conditions. He envisions VSAP LAB as the nucleus of a broader semiconductor innovation cluster, a stepping stone toward establishing Da Nang as a national high-tech hub.
Building a Skilled Workforce
While infrastructure is crucial, the success of Da Nang’s semiconductor ambitions hinges on human capital. The city’s target of attracting 5,000 professionals includes 1,500 design engineers and 3,500 specialists in testing and packaging. To achieve this, local universities are ramping up programs in chip design, physical design, and architecture, while forging partnerships with global semiconductor organizations and businesses. The National Innovation Centre is also stepping in by developing a shared database to support training across institutions offering semiconductor curricula.
Da Nang is sweetening the deal with substantial incentives for talent. Policies worth approximately 873 billion Vietnamese Dong (about US$33.2 million) provide benefits, income support, and accommodation for professionals and scientists engaged in semiconductor research and training. These measures aim to draw both local and international experts, positioning the city as an attractive destination for high-tech talent.
Phil Hoang, a semiconductor expert from the US-based organization TreSemi, praised Da Nang’s proactive approach to workforce development. He noted that the city has initiated concrete projects uniting government agencies, businesses, universities, and experts to train engineers capable of producing globally competitive chips. TreSemi, he added, is committed to supporting Da Nang through in-depth training courses aimed at creating top-tier talent.
Da Nang’s Growing Semiconductor Ecosystem
The city is already home to a nascent but promising semiconductor design sector. Around 10 companies, including global players like Synopsys, Renesas, and FPT Semiconductor, currently operate in Da Nang, employing roughly 550 engineers. This existing base provides a foundation for growth, but scaling up to meet the 2030 targets will require sustained investment and collaboration. The presence of these firms also signals confidence in Da Nang’s potential, as international corporations seek to diversify their supply chains amid geopolitical tensions and disruptions in traditional semiconductor hubs like Taiwan and South Korea.
Da Nang’s strategic location in central Vietnam, coupled with its burgeoning reputation as a business-friendly city, further enhances its appeal. The city has invested heavily in digital transformation and innovation, priorities that Luong Nguyen Minh Triet described as central to the municipal agenda for 2025-2030. By fostering an environment conducive to high-tech industries, Da Nang hopes to ride the wave of global demand for semiconductors, particularly as sectors like AI, automotive, and cloud computing drive unprecedented need for advanced chips.
Challenges and Opportunities Ahead
Despite the optimism, Da Nang faces significant hurdles. The global semiconductor industry is fiercely competitive, dominated by established players in the United States, Taiwan, and South Korea. Vietnam, while a rising star in manufacturing, lacks the decades of expertise and infrastructure that these countries possess. Building a skilled workforce and cutting-edge facilities from the ground up will take time, and Da Nang must navigate supply chain complexities and geopolitical risks that could impact investment.
Moreover, the semiconductor sector is capital-intensive, requiring billions in investment for research, development, and production. While projects like VSAP LAB are promising, they represent just the beginning. Sustaining momentum will demand consistent government support, private sector commitment, and international partnerships. Da Nang’s ability to balance these elements will determine whether it can carve out a niche in the global market.
Yet, the opportunities are immense. As the world grapples with chip shortages and seeks to diversify supply chains, emerging hubs like Da Nang stand to gain. Vietnam’s low labor costs, strategic location in Southeast Asia, and government backing provide a competitive edge. If successful, Da Nang’s semiconductor push could serve as a model for other Vietnamese cities, amplifying the country’s role in the global tech landscape.
A Forward-Looking Future
Da Nang’s journey to become a semiconductor powerhouse is emblematic of Vietnam’s broader aspirations to transition from a manufacturing-driven economy to a technology-led one. With projects like VSAP LAB setting the stage for innovation and a comprehensive strategy to develop human resources, the city is laying the groundwork for a transformative decade. Whether these efforts will translate into sustained economic impact and global recognition remains to be seen, but Da Nang’s resolve is clear: to be at the forefront of Vietnam’s high-tech revolution.
