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Vietnam's Semiconductor Industry: Gaining Momentum through Strategic Partnership with US

Published: 3.12.2024

Vietnam is becoming a pivotal destination in the semiconductor industry, highlighted by the recent visit of U.S. Deputy Secretary of State Jose W. Fernandez. His trip aimed to boost trade opportunities, promote clean energy, supply chain cooperation, and semiconductor development.  

With the Chips and Science Act allocating over $50 billion USD to bolster semiconductor production, the U.S. is keen to invest in expanding global semiconductor manufacturing, ensuring supply chain resilience. 

Vietnam has emerged as a strategic partner for semiconductor giants due to its strengths in assembly, testing, and packaging. Collaborations are crucial for diversifying and strengthening the global semiconductor ecosystem and addressing workforce development challenges in both countries.  

However, rare earth materials, essential for semiconductor production, remain a pressing issue, with Vietnam possessing the world's second-largest reserves after China. Addressing this could significantly enhance Vietnam's role in the global semiconductor supply chain. 

Vietnam's increasing prominence in semiconductor manufacturing is underscored by its partnerships with key players and the establishment of research and training centers. Despite these advancements, challenges remain, particularly in rare earth exploration, technology mastery, and policy formulation.  

Nonetheless, Vietnam's favorable investment climate, coupled with its growing industrial capabilities, positions it as a promising contender in the semiconductor industry, poised to attract further investment and contribute significantly to the global supply chain. 

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