US semiconductor firms ready to invest $8 bln in Vietnam: Under Secretary

As many as 15 U.S. semiconductor companies are prepared to invest circa $8 billion in Vietnam and are waiting for clearer signals of renewable energy development to make the move, Under Secretary of State Jose Fernandez has tipped.

All the companies have made commitments to their shareholders and customers that they will use only renewable energy, so they are waiting for a renewable energy regime in Vietnam to expand, the under secretary told reporters in Hanoi Friday, the third day of his visit to Vietnam.

They are waiting for permits to establish renewable power systems in the Southeast Asian country, he added.

Those investments will benefit Vietnam in two aspects: expanding the semiconductor industry and increasing the availability of clean energy in the country, he stressed. “It’s a good example of how Vietnam turns the vulnerability into a benefit by creating clean energy.”

Fernandez is on a tour to three Asian nations from January 22 to February 1, with Vietnam being the first leg, to be followed by the Philippines and South Korea.

His Vietnam visit is aimed to implement the agreements reached during President Biden’s trip to Hanoi last September, he said.

He revealed that semiconductor is the focal point of his visit. He also discussed trade opportunities for mineral, cooperation in energy, and supply chains.

At a meeting between Fernandez and Prime Minister Pham Minh Chinh Thursday, they discussed cooperation in semiconductor production and trade, workforce training, clean energy, among others.

Fernandez reiterated the U.S. government’s commitment to support Vietnam in developing the semiconductor industry, including the forming of 50,000 engineers for the latter in the next few years.

“That's important for Vietnam to develop in the semiconductor industry. There are companies right now that are telling us that they want to invest in Vietnam, but they're having trouble finding the qualified workforce,” he added.

Chipmaker Intel has invested some $1.5 billion in a packaging and testing plant in Vietnam. After inaugurating a factory in Bac Ninh province, northern Vietnam, last October, Amkor Technology Inc., plans to start mass production this year. Several other American chipmakers, including Marvell, plan Vietnam investments.