Danang to Implement Policies Supporting the Development of Semiconductors, Circuits, and AI

To attract experts and scientists, develop human resources, and support businesses in the semiconductor, microchip, and artificial intelligence ecosystem, the Danang Department of Information and Communications has proposed six supportive policies for the development of these fields within the city.

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According to Mr. Nguyen Quang Thanh, Director of the Da Nang Department of Information and Communications, the city currently lacks the legal basis and policies to support expenses for instructors from training institutions in Da Nang to participate in high-quality short-term training courses in semiconductor, circuit board, and artificial intelligence design, both domestically and abroad. There is also a lack of mechanisms to encourage and support the training of students and attract experts in these fields to work, transfer technology, and invest in the city.

Additionally, the central government and Da Nang city currently do not have separate policies to incentivize and support semiconductor, circuit board, and artificial intelligence businesses investing in the city. Therefore, the Department of Information and Communications proposes six groups of policies to support the development of these industries.

Specifically, they propose policies to attract experts and scientists from Vietnam and abroad to organizations, agencies, and units in Da Nang City to invest, start businesses, work, teach, and transfer technology in the fields of semiconductors, circuit boards, and artificial intelligence. These policies apply to all types of organizations, agencies, and units, with an initial income support level of up to VND 100 million for attracted experts and scientists. The initial income support will only be applied once and will be implemented for the first contract signing.

Experts and scientists will be prioritized for the arrangement of official residences or will be supported with up to 50% of the rental cost, not exceeding VND 7 million per month. They will also receive support with visa procedures, work permits, temporary residence cards, and intellectual property protection. Additionally, they will be exempt from personal income tax for five years, applicable to income from salaries and wages of experts and scientists working in the fields of semiconductor, circuit board, and artificial intelligence design, production, packaging, and testing in enterprises in these fields located in the city.

In addition to the above policies, experts and scientists attracted to work in administrative agencies and public non-business units in Da Nang City will enjoy additional policies. They will be able to sign labor contracts and earn an income of VND 30 to 100 million per person per month, including monthly salaries and allowances (if any). They will also be given priority in the consideration of civil servant recruitment or participation in civil servant recruitment according to regulations.

Another policy focuses on supporting the training and improvement of instructors’ qualifications. The city will sponsor various expenses, including tuition and mandatory fees as notified by the training institution, living expenses, round-trip travel expenses from Da Nang to the training location for those assigned to attend training outside of Da Nang, and costs for entry and exit procedures and health insurance.

Students, engineers who have graduated, as well as students currently enrolled in relevant or related majors, will be supported with preferential interest rate loans from the city’s Social Policy Bank to pay tuition fees for regular training courses, short-term training courses, and conversion from related majors to semiconductors, circuit boards, and artificial intelligence.

In addition, this group will also be supported with scholarship levels. A 50% tuition scholarship will be provided to: students currently enrolled in semiconductor, circuit board, and artificial intelligence training programs in the form of regular university and college education in the city, with excellent academic performance in the last year or a GPA of 3.20 – 3.59, or an entrance exam score of 24-26 points; students currently enrolled in related majors participating in conversion training programs in semiconductors, circuit boards, and artificial intelligence, with excellent academic performance in the last year or a GPA of 3.20 – 3.59; students and engineers who have graduated from university or college in related majors participating in conversion training programs in semiconductors, circuit boards, and artificial intelligence, with excellent academic performance in the last year or a GPA of 3.20 – 3.59.

The city will provide a 100% tuition scholarship to: students currently enrolled in semiconductor, circuit board, and artificial intelligence training programs in the form of regular university and college education in Da Nang City, with outstanding academic performance in the last year or a GPA of 3.60 – 4.00, or an entrance exam score of 27 points or higher; students currently enrolled in related majors participating in conversion training programs in semiconductors, circuit boards, and artificial intelligence, with outstanding academic performance in the last year or an entrance exam score of 27 points or higher, or a GPA of 3.60 – 4.00; students and engineers who have graduated from university or college in related majors participating in conversion training programs in semiconductors, circuit boards, and artificial intelligence, with outstanding academic performance in the last year or a GPA of 3.60 – 4.00.

Furthermore, for those facing housing difficulties, 50% of the rental cost will be supported, not exceeding VND 2 million per person per month. They will also be assisted and connected with recruitment into enterprises in the fields of semiconductors, circuit boards, and artificial intelligence after completing their training and internship programs.

Separate policies are proposed to support enterprises in the fields of semiconductors, circuit boards, and artificial intelligence, with incentives for investment in Da Nang. Specifically, the Da Nang Research, Design, and Development Center for Semiconductors, Circuit Boards, and Artificial Intelligence will be supported with research funds and the implementation of trainer training programs for these industries. The center will also be allowed to pay additional income based on work performance, in addition to the current regulations on financial autonomy, with the level not exceeding 0.8 times the basic salary fund of the officials under its management.

Strategic partners in the fields of semiconductors, circuit boards, and artificial intelligence will be supported with up to 5% of the cost of purchasing equipment, moving assets, production lines, equipment, and technology, as well as up to 20% of the cost of hiring highly qualified human resources working in strategic enterprises in these fields located in the city.

In terms of infrastructure, partners will be able to lease information infrastructure assets directly without going through auctions. The city will also implement direct bidding and purchase specialized equipment from strategic partners in these fields. Universities and training institutions will be supported in accessing and utilizing infrastructure for the development of semiconductors, circuit boards, and artificial intelligence, including the Design House, High-Performance Computing Center, Incubation, Research and Development Center, and state-funded labs and cloud services.

Startups and small and medium-sized enterprises in the fields of semiconductors, circuit boards, and artificial intelligence will receive infrastructure support, including 50% of the cost of renting space (excluding service costs such as electricity, water, air conditioning, security, and cleaning) in Software Parks, Information Technology Concentrated Areas, and shared office buildings in the city for one year. The maximum supported area will not exceed 200 m2, with a rental rate not exceeding the rate approved by the Da Nang People’s Committee for the Da Nang Software Park. They will also receive support for 50% of the cost of one website hosted domestically for one year, 50% of the cost of server rental, server placement rental, data storage services, and information security services from domestic service providers for one year, with a total support cost not exceeding VND 50,000,000 per organization or enterprise per year.

Regarding training support and the development of software and digital content production processes, policies include support for 50% of training costs related to programming skills, data analysis, information security, electronic circuit board design, and more.

In terms of scientific research, Da Nang will prioritize the participation of enterprises in the city’s science and technology tasks and the implementation of scientific topics and pilot deployment products of the city.

Additionally, information technology organizations and enterprises will be supported with interest rate subsidies on loans for projects related to software and digital content production and processing contracts. This support will be applied according to Resolution No. 149/2018/NQ-HĐND.

Vice Chairman of the Da Nang People’s Committee, Ho Ky Minh (in white shirt, on the right) in a meeting with the US Consul General discussing semiconductors and circuit boards.

According to Mr. Ho Ky Minh, Vice Chairman of the Da Nang People’s Committee, the city has identified high technology, including the semiconductor and artificial intelligence industries, as an important part of the five breakthrough groups that drive rapid and sustainable development. From October 2023 to the present, Da Nang has organized many important activities in human resource development, infrastructure preparation, policy formulation, and investment promotion in the fields of circuit boards, semiconductors, and artificial intelligence.

Mr. Ho Ky Minh affirmed that Da Nang is committed to continuing to create favorable conditions, from infrastructure and policies to high-quality human resource training, to help Synopsys, USA (a strategic partner of the city), and other enterprises in the fields of semiconductors, circuit boards, and artificial intelligence achieve sustainable development in Da Nang.