Vietnam Holds Talks with Chip Companies to Boost Investment and Build First Chipmaking Plant
Vietnam is currently engaged in talks with various chip companies in an effort to increase investment in the country and potentially establish its first chipmaking plant, according to two business executives. Despite concerns raised by U.S. industry officials regarding high costs, Vietnam aims to attract more semiconductor investment, including from foundries specializing in chip manufacturing.
Meetings have recently taken place with numerous American chip firms, including fab operators, according to Vu Tu Thanh, head of the Vietnam office of the US-ASEAN Business Council. Thanh declined to disclose the names of the firms involved, citing the preliminary stage of the discussions.
Furthermore, an anonymous chip executive revealed that talks with potential investors have included U.S. contract manufacturer GlobalFoundries and Taiwan’s PSMC. The objective is to establish Vietnam’s first fab, likely focusing on less advanced chips used in automotive and telecommunications applications.
These meetings follow the historic upgrade of formal ties between Vietnam and the U.S. in September, when President Joe Biden visited Hanoi. The White House acknowledged Vietnam as a potential “critical player” in global semiconductor supply chains.
GlobalFoundries attended a restricted business summit during Biden’s visit, but there has been no immediate indication of their interest in investing in Vietnam, according to a source familiar with the matter. GlobalFoundries declined to comment on subsequent contacts, while PSMC did not respond to requests for comment.
Industry officials have emphasized that these meetings primarily serve to gauge interest and discuss potential incentives and subsidies related to power supplies, infrastructure, and the availability of a skilled workforce. The Vietnamese government aims to establish its first fab by the end of the decade and stated that chip companies would benefit from “the highest incentives available in Vietnam.”
Additionally, the government may support local firms such as state-owned tech company Viettel in building fabs with imported equipment, according to Hung Nguyen, senior program manager at Hanoi’s University Vietnam. Viettel did not provide a response when asked for comment.
However, Robert Li, Vice President of U.S. chip design firm Synopsys, cautioned the government to carefully consider subsidies for fab construction. Li stated that building a foundry could cost as much as $50 billion and would require competing with China, the U.S., South Korea, and the European Union, all of which have announced substantial spending plans on chips.
John Neuffer, President of the U.S. Semiconductor Industry Association, also advised the government to concentrate on chip sectors where Vietnam already possesses strength, such as assembly, packaging, and testing.
