Ho Chi Minh City proposes subsidy of up to $570,000 for domestic chip design projects

The draft policy, prepared by the city's Department of Science and Technology, is seen as a major policy boost aimed at helping the strategic industry develop in line with Ho Chi Minh City's position as Vietnam's largest technology hub.

Local companies continue to face significant financial barriers even though Ho Chi Minh City is home to most of the country's semiconductor research institutes, universities, and engineering workforce, the department said.

The high costs of workforce training, research and development, and investment in equipment have become major obstacles to the industry's growth.

The proposed support would focus on four key areas: workforce training and development, research and development, pilot production, and investment in technologies, machinery, and equipment for semiconductor chip design.

The policy would be available only to Vietnamese-owned enterprises established under Vietnamese law, headquartered in Ho Chi Minh City, and paying taxes in the city.

Foreign-invested enterprises and multinational corporations would not be eligible.

One of the draft's most notable provisions concerns intellectual property rights.

Unlike many publicly funded research programs, the city plans to allow participating companies to retain full rights to register and own all research outcomes and intellectual property generated by the projects.

The city would not claim a share of profits or require companies to share commercial revenues derived from those intellectual property assets.

To qualify for funding, projects must demonstrate strong feasibility and innovation potential, while contributing to the development of core semiconductor technologies or new chip designs.

Companies must also provide matching funds and are encouraged to collaborate with universities and research institutes or make use of the city's shared laboratory facilities.

Vietnam's semiconductor industry generated an estimated US$21 billion in revenue in 2025 and now employs more than 7,000 engineers.

City authorities expect the proposed support mechanism, if adopted in 2026, to help foster more high-value 'Made in Vietnam' semiconductor products tailored to market demand.