IC scene in Vietnam sees hurdles

HANOI: After having been tipped as the next hub for semiconductor manufacturing, especially in IC-packaging and assembly, Vietnam is now under severe pressure with hurdles coming up on its path of growth.

Derailing its dreams to be a big name in the IC manufacturing industry, the country has been forced to delay its IC-packaging plant ramp.

The latest is that Vietnam’s IC-packaging startup Vietnam-Chipscale Advanced Packaging Services (V-Caps) has decided to postpone its back end facility.

It is a known fact that Vietnam as of now does not have a front-end semiconductor fab. The nation had in fact eyed a foray into IC manufacturing by kicking off operations in the less costly chip-packaging and assembly segments.

With low labour costs and an educated workforce, Vietnam is being seen by the chip world as a potential player. This has in fact spurred companies such as Intel and V-Caps to kick start the country's first two real chip manufacturing projects.

Meanwhile, it is also being said that the recent setbacks have not affected Vietnam much. The country is down but not out of the semiconductor manufacturing game, said a report. According to a study by Frost & Sullivan on the present scene, the government's road map is clear, and it is working toward establishing the semiconductor industry and boost the exports inVietnam. It is forecast that IC-packaging will happen in Vietnam, though it has been delayed by one or two years.