In a strategic move to bolster its semiconductor industry, Vietnam has welcomed Lam Research, a U.S. chip equipment maker, with open arms. The company’s Group Vice President of Global Operations, Karthik Rammohan, recently visited Hanoi to explore opportunities for diversifying its supply chain and enhancing its manufacturing operations in Asia. Prime Minister Pham Minh Chinh personally hosted the visit, underlining Vietnam’s commitment to attracting foreign investment.
Vietnam’s appeal to Lam Research is part of a broader effort to reduce reliance on China and diversify supply chains. The Vietnamese government is encouraging Lam Research to invest $1 billion in local production facilities. This move aligns with Lam Research’s strategy to mitigate the impact of U.S. export controls on its China business, which accounted for 26% of its income in 2023, down from 31% in 2022.
One key partnership in the works is between Lam Research and Seojin, a South Korean business with factories in Bac Ninh and Bac Giang provinces, known for their strong presence in Samsung phone and semiconductor production. While Seojin, a supplier to Samsung and Intel, has not officially confirmed its involvement, the collaboration could bolster Vietnam’s position as a crucial player in the semiconductor value chain.
Lam Research’s interest in Vietnam is also fueled by the country’s skilled workforce and robust infrastructure. Vietnam’s semiconductor industry has been attracting major investments, with companies like Amkor and Hana Micron announcing billion-dollar expansions in 2023. Nvidia CEO Jensen Huang’s visit to Vietnam last year and subsequent discussions on investments underscore the country’s growing importance in the global tech landscape.
Vietnam’s ambitious plan to train 100,000 semiconductor engineers, designers, and other staff further highlights its commitment to becoming a key player in the semiconductor industry. As geopolitical tensions reshape the global tech landscape, Vietnam’s strategic positioning and proactive investment policies are likely to drive further growth and innovation in its semiconductor sector.
(Source: Nikkei Asia | Mobile World Live | Vietnam Plus)
