A group of prominent US semiconductor and digital companies, including Intel, GlobalFoundries, and Google, is expected to participate in a business meeting in Hanoi as part of President Joe Biden's visit to Vietnam. The meeting aims to strengthen ties between the US and Vietnam and discuss plans to enhance Vietnam's role in various segments of chip manufacturing. This move is part of the US strategy to reduce the semiconductor industry's exposure to risks associated with China, such as trade restrictions and tensions over Taiwan.
The meeting, which is still in the planning stages, is expected to include senior executives from companies like Google, Intel, Amkor, Marvell, GlobalFoundries, and Boeing. While the companies have not officially commented on their participation, these discussions are significant as they signal the US's intent to collaborate with Vietnam in the semiconductor sector.
The second person familiar with the plans confirmed the presence of several large US semiconductor companies, including Amkor, along with their Vietnamese partners like tech firm FPT. Additionally, top Vietnamese and US officials, including Secretary of State Antony Blinken, are expected to attend the meeting.
Semiconductors are expected to be a key topic during President Biden's visit to Hanoi, highlighting the importance of this industry in bilateral relations. The US administration aims to elevate its ties with Vietnam, a former adversary, and semiconductor collaboration is a strategic aspect of this effort.
While the details of the round table meeting have not been officially announced, it is anticipated to involve approximately 30 top executives and officials. Several companies on the list have already invested in Vietnam. For instance, Intel operates a $1.5 billion factory in southern Vietnam for chip assembly, packaging, and testing and has plans for expansion. Amkor is constructing a high-tech semiconductor assembly and testing mega factory near Hanoi, and Marvell intends to establish a world-class center in Vietnam.
US officials have consistently pointed out that assembly and design are the segments of the semiconductor industry where Vietnam has the potential for rapid growth. However, the shortage of engineers could pose challenges to the industry's development. Vietnam also aspires to build its semiconductor fabrication plants (fabs). GlobalFoundries, known for manufacturing integrated circuits for smartphones, cars, and various applications, is likely to play a role in this endeavor.
Vietnam is a significant exporter of smartphones and electronics, making it an attractive destination for semiconductor investment. The Vietnamese government has been engaging with major chip companies, including Intel, Samsung, and Qualcomm, to seek advice on establishing the country's first semiconductor fab.
Apart from semiconductors, upgrading formal ties between the US and Vietnam could foster collaboration in the field of artificial intelligence (AI). Google, a global AI player, could potentially contribute to advancements in this sector. Vietnam's largest conglomerate, Vingroup, which owns Nasdaq-listed electric car maker VinFast, has a dedicated unit focused on AI.
Additionally, there are reports that Boeing may announce a deal involving the sale of 50 of its 737 MAX jets during this visit, although Boeing has not officially commented on the matter.
By fLEXI tEAM