One US-based chipmaker committed US$1.5b to build the largest chip-making factory in Ho Chi Minh City

• Sommana Yan
• 13 September 2023
• Uncategorized
• 1878 Views

Following President Biden’s visit to Vietnam, the United States has announced a groundbreaking semiconductor partnership that aims to leverage Vietnam’s potential in bolstering resilient semiconductor supply chains, according to the White House’s Press dated 11^th, September 2023.

“The United States recognizes Vietnam’s potential to play a critical role in building resilient semiconductor supply chains, particularly to expand capacity in reliable partners where it cannot be re-shored to the United States and further promote manufacturing and industry development at home under the U.S. CHIPS Act,” reads the white house’s statement.

The semiconductor industry has recently become a focal point in US-China relations, with both nations striving to enhance their capabilities in this critical sector. Export controls targeting each other’s semiconductor capacity have further exacerbated tensions.

Recognizing the need for a reliable partner in semiconductor supply, the United States is turning to Vietnam. According to Ted Osius, President of the US-ASEAN Business Council and a former US ambassador to Vietnam, Vietnam is well-positioned to meet this demand. He anticipates an acceleration in technological collaboration, stating, “The significance of Vietnam in that supply chain will increase.”

Intel, a California-based chip manufacturer, shares this perspective. The company has pledged a substantial investment of $1.5 billion to establish an extensive campus located just outside Ho Chi Minh City. This facility is slated to become Intel’s largest single assembly and test facility globally.

As Washington strengthens its ties with Hanoi, experts anticipate further investments in the technology sector. Vietnam’s role in global technology supply chains is poised to expand, solidifying its position as a key player in the evolving landscape of technology collaboration.

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