Receiving orders of up to 70 million electronic chips, what does FPT's semiconductor ecosystem have?

FPT Semiconductor is responsible for the main task of designing integrated circuits (chips), focusing on power management chips (PMIC) and IoT chips. FPT Semiconductor is the legal entity that receives orders of up to 70 million chips from international partners.

The "Vietnamese chip dream" of a technology giant

Before becoming a technology, information and telecommunications business group as it is today,FPT of Chairman Truong Gia Binh started out as a Food Technology Company established in 1988. Very quickly after that, realizing the potential of information technology, FPT quickly changed direction and changed its name to "Technology Development and Investment Company" (FPT) in 1990.

During the period 1990-2000, FPT focused on the field of information technology, participating in important projects for ministries and sectors such as aviation, banking, and telecommunications.

In particular, FPT was one of the pioneers in bringing the Internet to Vietnam, establishing the first Internet center in 1995. This period also marked the birth of FPT Software (1999), opening a new direction in software export.

From 2000-2010, FPT expanded to the international market, especially Japan. The company achieved initial success in software outsourcing. Domestically, FPT expanded into many new fields: establishing FPT Telecom (telecommunications), FPT Education ( education ) and listing shares on the Ho Chi Minh City Stock Exchange (2006), becoming a multi-industry corporation.

Up to now, FPT continues to promote its global operations, acquire foreign technology companies and expand its network in many countries. The group has strongly shifted to the fields of digital transformation, AI, Big Data, and especially the semiconductor industry, identifying these as new growth drivers.

To participate in the semiconductor technology game, FPT has nurtured the "Vietnamese chip dream" for more than 10 years. The enterprise has focused on preparing the foundation, researching and developing internal human resources, mainly through small projects and technology "incubators" within FPT Software.

The milestone marking a strong transformation to affirm FPT's position in the semiconductor industry was in 2022, when FPT officially established FPT Semiconductor.

FPT Semiconductor is considered the "heart" of the FPT semiconductor ecosystem. FPT Semiconductor is responsible for the main task of designing integrated circuits (chips), focusing on power management chips (PMIC) and IoT chips. FPT Semiconductor is the legal entity that receives orders of up to 70 million chips from international partners in Korea, Taiwan and Japan.

FPT Semiconductor is considered the "heart" of the FPT semiconductor ecosystem.

The person assigned to run FPT Semiconductor is Mr. Tran Dang Hoa as Chairman of the Board of Directors. Mr. Hoa is also the founding shareholder of FPT Semiconductor.

Mr. Hoa is not a strange face because before becoming the head of FPT's semiconductor business, Mr. Hoa worked at Fsoft and was the Chairman of FPT IS.

Mr. Tran Dang Hoa, Chairman of FPT Semiconductor

FPT IS is a company that has been in operation for 15 years with a charter capital of 1,300 billion VND and a revenue scale of thousands of billions each year.

Developing “chip design” outsources manufacturing to optimize costs

At the 2024 Annual General Meeting of Shareholders, FPT Chairman Truong Gia Binh shared that the group will focus on developing the semiconductor sector because this is considered a "field that will determine the history of mankind" for at least the next 25 years.

FPT Chairman Truong Gia Binh said he will focus on developing the semiconductor sector.

With this orientation, in recent years, FPT has continuously strengthened its semiconductor ecosystem to not just stop at "semiconductor chip design".

In fact, besides FPT Semiconductor, FPT Software plays an important role in supporting and utilizing FPT Semiconductor products. FPT Software is one of the largest information technology service companies in Vietnam. Chips designed by FPT Semiconductor can be integrated into FPT Software solutions, creating a business cycle with great competitive advantage.

At the same time, realizing that the shortage of human resources is one of the biggest challenges of the Vietnamese semiconductor industry, FPT Education has established the Semiconductor Microchip Faculty, with the goal of providing in-depth training in microchip research and design. Cooperating with prestigious academies in the world (such as Jetking Academy in India) to build international standard training programs, providing high-quality human resources for both Vietnam and the world.

Other units in the FPT ecosystem also leverage other units to form a complete "FPT Chip Inside" ecosystem, such as applying FPT solutions (akaBot - process automation) in the production and management process; FPT's digital transformation solutions can integrate chips designed by FPT Semiconductor to create smarter products.

Cooperate with foreign partners such as FCC Partners (Taiwan) to establish investment funds, promote human resource development and attract foreign investment in the semiconductor industry...

In particular, what is being shown shows that FPT identifies itself as a "fabless company" (a company without a manufacturing plant), so it will focus on designing high-value microchips, then hire international partners with manufacturing capacity to manufacture them, in order to optimize costs and efficiency. According to experts, this is a reasonable step to keep up with the world's development speed and be able to participate in the global semiconductor supply chain, contributing to the development of a sustainable "Make in Vietnam" semiconductor industry.

Source: https://daibieunhandan.vn/nhan-don-hang-len-toi-70-trieu-chip-dien-tu-he-sinh-thai-ban-dan-cua-fpt-dang-co-nhung-gi-10382325.html