Vietnam is holding talks with chips companies to draw investment in the country and possibly building its first chipmaking plant. The talks followed a historic upgrade between Vietnam and the US in September 2023, when President Joe Biden visited Hanoi and the White House described Vietnam as potentially a critical player in semiconductor global supply chains.
The Southeast Asian electronics manufacturing hub already hosts US giant Intel’s largest semiconductor packaging and testing plant worldwide and is home to several chip-designing software firms. The country is now planning to attract more semiconductor investment, including from foundries, which focus on manufacturing chips.
An executive disclosed that the discussion with potential investors has involved US contract manufacturer GlobalFoundries and Taiwan’s PSMC. The ultimate goal is to construct Vietnam’s first fab, most likely for less advanced chips used in cars or for telecoms applications.
Specifically, Bac Ninh Province is willing to cooperate with the US Semiconductor Industry Association (SIA) to build a high-technology ecosystem for the North of Vietnam in the province, including semiconductor and chip production. The province plays a key position in the Hanoi Capital Region and is one of seven provinces in the northern key economic zone.
As of 2023, US companies are investing in 19 projects in the province with a combined investment capital of over USD 644 million. In the coming time, the province wishes to promote relations with US localities, associations, and organizations to deepen the achieved results and expand cooperation in new sectors.
(Sources: Reuters, Vietnam Plus)