Biden Boosts US-Vietnam Ties with Semiconductors Focus in Hanoi Visit
President Joe Biden’s visit to Vietnam is set to bolster ties between the two countries, with an emphasis on semiconductors. The White House aims to elevate relations with Vietnam, and semiconductors will play a crucial role in achieving this goal.
Top US semiconductors and digital companies, including Intel, GlobalFoundries, and Google, are expected to attend a business meeting in Hanoi on September 11. The meeting will solidify plans to enhance Vietnam’s role in chipmaking, part of the US strategy to reduce dependence on China and mitigate risks associated with trade restrictions and tensions over Taiwan.
The meeting, which is still being arranged, will see the participation of senior executives from Google, Intel, Amkor, Marvell, GlobalFoundries, and Boeing. Secretary of State Antony Blinken and officials from both Vietnamese and US governments will also be in attendance. While no formal announcements have been made, industry insiders anticipate that about 30 top executives and officials will participate in the roundtable discussions.
Several of the companies attending the meeting have already invested or announced plans to invest in Vietnam. Intel, for example, has a $1.5 billion factory in southern Vietnam, which serves as its largest global facility for chip assembly, packaging, and testing. Amkor is constructing a cutting-edge mega factory for semiconductor assembly and testing near Hanoi, while Marvell has expressed its intention to establish a world-class center in Vietnam.
Vietnam is actively pursuing the establishment of its own chipmaking factories. The country’s largest conglomerate, Vingroup, is focusing on artificial intelligence (AI) and has a subsidiary dedicated to AI development. The Vietnamese government has sought advice from major chip companies, including Intel, Samsung, and Qualcomm, on setting up the country’s first fab. Additionally, Google’s involvement in Vietnam’s AI sector could benefit from an upgrade in formal ties between the US and Vietnam.
Apart from the emphasis on semiconductors, other sectors may also benefit from closer collaboration between the two nations. For example, there are indications that Boeing may announce the sale of 50 of its 737 MAX jets during President Biden’s visit.
The visit serves as a testament to the growing importance of Vietnam in the global semiconductor industry. As a major exporter of smartphones and electronics, Vietnam has the potential to play a significant role in reducing supply chain vulnerabilities and diversifying chip production. However, industry experts note that a shortage of engineers could hinder the industry’s growth in Vietnam.
The visit also highlights the broader strategy of the US to strengthen partnerships in the Indo-Pacific region and enhance regional security and economic stability. By focusing on areas such as semiconductors and AI, the US aims to reduce reliance on China and promote a more balanced and resilient global supply chain.
President Biden’s visit to Vietnam is expected to yield significant advancements in US-Vietnam relations, as well as drive progress in the semiconductor industry. With top US companies in attendance and plans to boost Vietnam’s position in chipmaking, this visit marks an important step in the ongoing efforts to foster closer ties between the two nations.
