Chip happens: Vietnam’s semiconductor conundrum

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A friend and mentor once told me: “To everything, there truly is a season.” In life, we’re constantly presented with decisions to make, but – even though we might not know it at the time – some of those are false choices.

If you aren’t actually ready for something to happen, forcing it likely won’t make a difference. On the other hand, if you’re objectively all set to make the leap – even if you approach it with apprehension – chances are you’ll succeed.

All of this is a long-winded way of saying what will be, will be, and all we can do is to make a decision when we come to these forks in the road and do our best with it. It’s not a very satisfying answer, but that’s life.

Vietnam appears to be at a crossroads when it comes to how it should enter the global chip supply chain. Read on to find out the options the country has in front of it.

Today we look at:

• Vietnam’s big chip decision
• The US$5 million series A round of a Singapore-based robot programming platform
• Other newsy highlights such as Sea Group being in the red for Q3 and a major management change at Grab

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Of course, Vietnam would love to be a big part of the semiconductor chip supply chain – who wouldn’t? Sometimes, it feels like the whole world’s tech progress lives or dies by these chips.

But is its talent ready to take on the fabrication challenge? Or would it be better served taking a simpler route, at least to begin with?

• Significant cost: Industry experts warn that construction of a wafer fab, which processes silicon wafers to become finished chips, would cost anywhere from US$10 billion to US$50 billion. However, a shortfall in local talent could hamper the whole effort.
• Giant doubts: Intel has shelved a planned expansion in Vietnam, citing concerns over “stability of power supplies” and “excessive bureaucracy.”
• Alternatives: Instead of a wafer fab, Vietnam could consider training talent to work on chip materials and manufacturing or focus on chip design and packaging.

Read more: Vietnam’s chip ambition cramped by talent shortage

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