Amid the surging demand for semiconductor engineers driven by the AI boom, many companies are turning to Vietnam for its talent pool and competitive labor costs, positioning the Southeast Asian nation as a "magnet" for major players in the chip industry, according to an article published recently by Nikkei Asia.

Alchip Technologies, Chinese Taipei's leading provider of AI chip design services, is expanding its R&D team into Vietnam, where it is planning to open its first office this year, the article said.

 "Vietnam's promising pool of engineering talent and their strong work ethic make it a highly attractive option for us. We've been impressed by the dedication and commitment of Vietnamese engineers, who are eager to learn and contribute," President & CEO Johnny Shen was quoted by Nikkei Asia as saying.

Also venturing into Vietnam in search of young engineers are GUC and Faraday Technology, affiliate chip design service providers for TSMC and UMC, the article said.

Likewise, South Korean companies are turning to Vietnam, partly to offset a brain drain in their home market, according to the article.

South Korean’s BOS Semiconductors entered Ho Chi Minh City in 2022 to set up a support team. But as executives jetted between Vietnam and South Korea, comparing the two sets of staff, the quality of Vietnamese engineers convinced them to upgrade the team, the article said.

"They realized this could be a main R&D center," country manager Lim Hyung Jun was quoted by Nikkei Asia as saying,

According to the Nikkei Asia, the availability of tech workers in a time of shortage could help Vietnam achieve one of its long-held dreams: moving up the tech value chain.

American giant Marvell described Vietnam as a "strategic location for the development of engineering talent." Marvell aims to increase its local headcount to about 500 by 2026.

US-based Synopsys, the world's top chip design tool maker, is among the most active to venture into Vietnam, where it currently has more than 500 employees across multiple design centers in several cities.

Mr. Robert Li, Synopsys Vice President of Sales for Taiwan (China) and Southeast Asia, told Nikkei Asia that the high degree of interest among Vietnam's students and workforce to be trained in semiconductor engineering, coupled with the Government's funding and programs, are helping establish the country as a semiconductor talent hub.

Vietnam targets to train 50,000 engineers for the semiconductor industry by 2030.