Hanoi, Reuters – US chipmakers and semiconductor companies including Google, GlobalFoundries and Intel are reported to attend a meeting on Joe Biden’s visit to Vietnam.
President Joe Biden’s visit is seen of utmost importance in the Vietnamese media, as it will help boost ties between the two countries. The meeting which is still being scheduled, is of utmost importance for Vietnam as it will increase the country’s role in different areas of chipmaking.
Vietnam, holds a significance in the US policy of global chipmaking industry, as its a part of Washington’s broader plan to reduce the semiconductor sector’s exposure to China and risks related to it.
In recent times, Semiconductor and chip making industry has been under tremendous pressure after the COVID-19 lockdowns, and slow economic recovery in China. Hence, senior executives of top US chipmakers will attend a meeting in Vietnam, including Google, Amkor, Intel, Boeing, GlobalFoundries, and Marvell to name a few.
Although, the companies did not immediately respond to requests for the comments on the news outside of the business hours. Nonetheless, a person familiar with the plan confirmed the presence of several big US chipmakers in Vietnam to attend a meeting amid Biden’s visit to the country.
Along with top US chipmakers, other attendees includes, their Vietnamese partners, like tech company FTP, and top Vietnamese and US officials, including Antony Blinken.
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Biden’s visit to Vietnam
The focal point of President Joe Biden’s visit to Vietnam is to discuss matters relating to the semiconductor and chipmaking industry, as the US wants to formally hoist relations with the former competitor.
The US have repeatedly maintained this stance that Vietnam can likely grow much faster in designing and assembling semiconductor chips, although a shortage of engineers can dampen the pace.
However, Vietnam also has ambitions to establish its own chipmaking industries. GlobalFoundries, one of the expected attendees of the meeting, is quite specialized in making integrated circuits on wafers for cars, smartphones, and other applications.
US officials are hopeful that the upgradation of ties with Vietnam will potentially lead to collaborations in Artificial Intelligence (AI), where Google is a major stakeholder.
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US chipmakers interests in Vietnam
Top chipmakers from across the globe are really interested in the semiconductor and chipmaking industry of Vietnam. This is quite evident from the fact that some of the companies present on the list have already invested in the country.
Intel has established a $1.5 billion factory in Southern Vietnam for testing, packaging and assembling the chips, the largest in its network and is planning to expand it further.
Moreover, Amkor is planning to build a state-of-the-art semiconductor assembling and testing facility near Hanoi. Chip designing company Marvell also has unleashed its plans to build a tp quality center in Vietnam.
An executive from a top US chipmaker said that the Vietnamese government has been holding talks with major chips companies, including Intel, Samsung, and Qualcomm for advice on setting up the country’s first fab.
In addition to that, Vietnam’s conglomerate and the parent of Nasdaq listed EV maker, VinFast is focussing on establishing an AI unit. Boeing is also expected to announce the sale of 50 of its 737 MAX jets.
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