California-based chip manufacturing equipment supplier Lam Research has plans to partner with Korea’s Seojin Company to develop factories and establish a supply chain with an investment of $1-2 billion in the first phase as it seeks to expand in Asia.
In the next phase, the U.S. firm will consider direct investment or expansion in Vietnam, Karthik Rammohan, vice president of global operations at Lam Research, told Vietnamese Prime Minister Pham Minh Chinh in Hanoi on Wednesday.
Seojin already has factories in the northern provinces of Bac Ninh and Bac Giang, and both house major multinational semiconductor and electronics manufacturers.
Rammohan expressed interest in studying Vietnam's investment promotion policies and potential initiatives to support the development of a supply chain ecosystem for the semiconductor industry in the Southeast Asian country.
For his part, Chinh stressed that both the U.S. and South Korea are comprehensive strategic partners of Vietnam, and science-technology and innovation are key pillars of their partnerships.
Vietnam is looking to develop its high-tech and semiconductor industries with leading players like Lam Research by providing incentives and modern infrastructure, the government chief added.
To realize this goal, Vietnam is training a workforce of 50,000-100,000 engineers by 2030.
He said that major tech companies such as Samsung, Intel, and Foxconn are already present in Vietnam while many other leading global corporations are exploring opportunities and planning investments in the country.
Chinh suggested both companies focus on research and development and technology transfer, helping develop a robust semiconductor ecosystem in Vietnam.
The two companies should continue working with relevant Vietnamese authorities and localities to ensure a smooth and legal investment process, the Prime Minister said.
In 2023, Lam Research booked revenue of $14.3 billion in 2023 and spent $1.7 billion on R&D, the firm said on its website. Mainland China accounted for 40% of its 2023 revenue, followed by Korea with 19%, Japan with 14% and Taiwan with 13%.