Recognizing that Vietnam can play a critical role in building resilient semiconductor supply chains, the US has announced a set of new initiatives to strengthen bilateral sci-tech ties.
Addressing a joint press briefing with Vietnam’s Party chief Nguyen Phu Trong in Hanoi late Sunday, U.S. President Joe Biden said the two countries were “deepening our cooperation on critical and emerging technologies, particularly around building a more resilient semiconductor supply chain.”
On the heels of elevating bilateral ties to that of a comprehensive strategic partnership, the two countries signed a Memorandum of Cooperation on Semiconductor Supply Chains, Workforce and Ecosystem Development that will expand semiconductor ecosystem capacity in Vietnam towards supporting US industry.
Under the International Technology Security and Innovation Fund, created by the CHIPS Act of 2022, the U.S. will partner with Vietnam to further develop Vietnam’s current semiconductor ecosystem, regulatory framework, workforce and infrastructure.
The two countries will launch comprehensive workforce development initiatives in Vietnam to jointly develop hands-on teaching labs and training courses for semiconductor assembly, testing and packaging.
Vietnam is facing a critical shortage of skilled engineers for this industry. Minister of Information and Communications Nguyen Manh Hung said September 6 that less than 20% of Vietnam’s yearly need for 20,000 semiconductor engineers was being met.
Other initiatives include Developing Electronics & Leading Technology Advancement Partnerships (DELTA) network; and the Vietnam-U.S. Science and Technology Agreement for Research (VUSTAR).
Several U.S. chip companies have announced plans to invest or expand operations in Vietnam. Among them, Arizona-based Amkor Technology will start operations of a $1.6-billion factory in the northern province of Bac Ninh next month.
Synopsys is launching a semiconductor design and incubation center in collaboration with the Saigon Hi-Tech Park while Marvell plans the establishment of a world class semiconductor design center in Ho Chi Minh City.