Vietnam consumes more than 20 billion integrated circuits (IC) worth a combined US$2 billion a year but most of them are imported.

An integrated circuit called SG-8V1 of Integrated Circuit Design Research and Education Center (ICDREC) has been commercialized.

Speaking at a review conference on the city’s microchip industry last Friday, the HCMC Semiconductor Industry Association (HSIA) said this huge demand was a driver for the city to develop the industry.

HSIA said the city was looking to develop the IC industry into an economic spearhead to speed up the city’s industrialization.

Many enterprises and experts said Vietnam is considered a high growth market for semiconductor producers as annual demand totals nearly US$2 billion.

In order to lead the nation’s IC industry development drive and reduce dependence on imports, the city government is implementing a development program for the chip industry between 2013 and 2020.

After two years of implementation, the city has technically completed relevant legal documents and proceeded to training human resources, doing research, building a center for IC design and promoting international cooperation.

Some local chips have been successfully commercialized such as SG-8V1, KIT DE-8V1, container locks, galvanometers, digital communications module and management system of radio frequency identification.

Ngo Duc Hoang, director of the Integrated Circuit Design Research and Education Center (ICDREC) under the Vietnam National University in HCMC, said the world’s microchip sales amounted to nearly US$315 billion last year. If Vietnam secures small share, it could earn billions of dollars in annual sales.

The city has been facilitating the development of a multi-million-dollar microchip factory project of Saigon Industry Corporation (CNS).

Saigon Semicon ductor Technology Inc., a locally-invested company, has been awarded a certificate to construct an IC manufacturing facility at Saigon High-Tech Park.