From The Saigon Times

I am no expert in electronics or semiconductors but working with Paco has expanded my near to zero knowledge on those industries – but just a bit only. I still am learning and still cannot claim that I am well-versed though I make an effort to be familiar as NarraVC helps this sector.

One thing about me: I like sharing things I come across in my readings and vice-versa. These somehow help zero in on items which usually don’t register in my radar. When one of our BGN members, Vincent Chua sent me this, I knew that this would not only appeal to the tech geeks or the nerd herd (I borrow this from the TV series Chuck).

One perspective we could gather in this short interview is that Asia has been continuously emerging and reclaiming its old glory (in recalling high school Asian history, a lot of the technologies, knowledge, religions and [in]famous personalities came from the biggest continent). However, I bear witness to the Philippines’ perpetual and frustrating grapples with – I hesitate terming it regression, but it is in a way – a lot of minor and major choke points in all its sectors.

Comparisons aside, while it highlights pieces on Vietnam’s potential industrial and economic growth, it champions our Asian and global competitiveness all the same. We are slowly breaking down the regional barriers which distinguish one being a Western influence and one being Asian in character.  

In a very open and flat set-up of international trade and investments, I believe our local and national governments’ have produced well-meaning policies. The challenge lies in implementing the required rules and regulations. Our Philippine industries need to be assured of solid support and unflinching commitment to carve out returns invested on Filipinos who have sacrificed building skills and gaining knowledge.  Their intellectual and physical gains translate into producing country employment, welfare, and empowerment. I hope the incoming Aquino administration will not back out from its promises and realistically deliver their platforms for governance.   

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Vietnam could produce its own Smart phone in a few years

Asia is the fastest growing consumer of microelectronics, and countries like Vietnam, where this industry is not so developed yet, with its talented people, can actually play a key role in the near future.

This is the point that Ms. Geok-Cheng Tan, Managing Director in South Asia of the U.S.-based Synopsys, which provides tools and services for digital system-on-chip design, stressed in an encounter with The Saigon Times Daily.  The interview was conducted on the sidelines of the first Solid-State Systems Symposium organized in HCMC by the Vietnam National University Ho Chi Minh City on June 17- 18. Excerpts follow.

The SGT Daily: Synopsys is pursuing the path of the integrated circuit (IC) industry. So, in this changing world, what are we heading?

Ms. Geok-Cheng Tan: Well, we didn’t reach the max yet, we have to grow faster: Apple just launched the new 4G Iphone and they sold 600,000 units already. This confirms the high demand of electronics devices. Everybody wants a Smartphone now. And today we need to supply five times more technology in order to satisfy this big demand.

What can be the ideal market for these products?

- Asia, without any doubt. This is the fastest growing consumer of microelectronics. Many European and American companies decided to invest in this area in order to get closer to the customers, because they understood this is the ideal market for this kind of product. Microelectronics is the key for the future of Asia. Countries like China, India, Taiwan and Singapore have already developed the semiconductor industry and Vietnam has a great potential.

And how can Vietnam be on the bandwagon with the others?

- Today Vietnam is like India 16 years ago, when I started working for Synopsys in that country: everything is supported by the Government and there are important multinational companies, like the Japanese “Renesas Electronics Semiconductor”. It employs 300 chip designers in Vietnam, but its role is important because it’s bringing to your people knowledge, training, experience.

How can a government attract foreign companies?

- That’s the point. The first parameter to appeal them is the cost effectiveness. Compared to the other giants in Asia, such as India or China, Taiwan or Singapore, the cost in Vietnam is much more effective.

But Taiwan and Singapore are on the bandwagon already…

- Taiwan is very advanced compared to others because the government started the program 20 years ago, but today the cost there is higher than in Vietnam.

So, how can we play on the cost effectiveness in order to attract foreign companies in this country?

- The cost is the first parameter, and you have to take advantage of that. Once here, foreign companies can train your people. In that way, you will achieve competency. Once you have these skills, you can start to design your own technology: a new MP3 reader, a new smartphone, etc.

Do you really believe it is possible?

- Yes, because I have seen it. It happened in Taiwan. The former Japanese colony was a follower. It followed what Japan and the United States did in the semiconductor industry and today is one of the leaders in this segment: there is the largest manufacturing plant for semiconductors run by Taiwan semiconductor manufacturer TSMC, which, itself, has the 60% share of the world market. The second company is UMC, also from Taiwan, which holds a 21% market share.

How can the Vietnamese Government help effectively in this industry?

- The Government must believe and support it. Without its help you can’t develop such a costly segment. Semiconductor is not as easy as producing a new software: it takes a lot of efforts, training, experience and it’s very expensive to design. For just a prototype, a sample, you need a few hundred thousands of dollars. So the financial support of the Government is fundamental in order to start developing this industry.

What is the relationship that Synopsys has with Vietnam?

- We provide the software platform for chip designers, we give them the right tools so they can create chips with the highest level of accuracy and in the shortest possible time. When we came here seven years ago, we made a promise to the VNU President, and it was the commitment to make the first digital chip. We assisted the designers step by step with the software. We worked side by side until we reached the result. We promised to make the first chip, we made it and we are still here.

Reported by Ngoc Tran