9-9-2023 (HANOI) President Joe Biden’s visit to Vietnam is set to bring together major U.S. semiconductor and digital companies, including Intel, GlobalFoundries, and Google, for a business meeting in Hanoi, according to sources familiar with the plan.
The meeting, currently in the works, underscores the United States’ intention to bolster Vietnam’s global role in various aspects of chip manufacturing. This move is part of Washington’s broader strategy to reduce the industry’s exposure to risks associated with China, such as trade restrictions and tensions over Taiwan.
Among the anticipated attendees are senior executives from Google, Intel, Amkor, Marvell, GlobalFoundries, and Boeing. A partial list of attendees was discussed with Reuters by a source familiar with the plans. At the time of reporting, the companies had not responded to requests for comment.
A second source familiar with the plans confirmed the presence of several prominent U.S. chip companies, their Vietnamese partners (including tech company FPT), and Vietnamese and U.S. top officials, including Secretary of State Antony Blinken.
Semiconductors are expected to be a central topic during President Biden’s visit to Hanoi, as the White House aims to formally enhance relations with Vietnam, a former adversary.
While the roundtable meeting has not been officially announced, it remains unclear whether any of the attending companies will make announcements. According to one of the sources, the meeting is expected to include around 30 top executives and officials.
Several companies on the attendee list have already invested or announced investments in Vietnam. Intel, for instance, operates a $1.5 billion chip assembly, packaging, and testing factory in southern Vietnam, with plans for expansion. Amkor is constructing a “state-of-the-art mega factory for semiconductor assembly and testing” near Hanoi. Chip designing firm Marvell has expressed intentions to establish a “world-class” center in Vietnam.
U.S. officials have repeatedly emphasized that assembly and design are the segments of the chipmaking industry where Vietnam is likely to experience faster growth. However, a shortage of engineers could potentially slow down the industry’s progress.
Vietnam also aspires to develop its own chip manufacturing facilities. GlobalFoundries specializes in manufacturing integrated circuits on wafers for smartphones, automobiles, and other applications.
Additionally, Vietnam is a significant exporter of smartphones and electronics. The Vietnamese government has engaged in discussions with major chip companies in the country, such as Intel, Samsung, and Qualcomm, seeking advice on establishing the country’s first fab.
U.S. officials have highlighted that upgrading formal ties with Vietnam could foster collaboration in the field of artificial intelligence (AI). Google, a major global player in AI, may play a significant role in such cooperation. Vingroup, Vietnam’s largest conglomerate and the parent company of Nasdaq-listed electric car maker VinFast, has a unit dedicated to AI.
In addition to discussions on chip manufacturing and AI, Boeing is expected to announce a deal involving the sale of 50 of its 737 MAX jets, according to insiders.
