NVIDIA Plans to Establish Semiconductor Hub in Vietnam

U.S. semiconductor company Nvidia is reportedly pursuing plans to establish a semiconductor production base in Vietnam. This is seen as part of efforts to diversify production facilities to minimize the risks posed by U.S. government semiconductor export regulations.

According to major foreign media on the 10th (local time), Jensen Huang, Nvidia's CEO, visited Hanoi to attend a semiconductor cooperation meeting hosted by Vietnam's Ministry of Planning and Investment. The meeting was attended by representatives from local tech companies including FPT, a major Vietnamese IT corporation; Vingroup, the parent company of electric vehicle maker VinFast; and Viettel Mobile, Vietnam's largest mobile carrier. The specific agenda of the meeting was not confirmed. However, it is known that discussions likely focused on revitalizing Vietnam's semiconductor industry and potential partnerships between Vietnamese tech companies and Nvidia.

Jensen Huang, CEO of NVIDIA.
Photo by EPA Yonhap News

The Vietnamese government, citing CEO Huang, stated, "Nvidia regards Vietnam as an important market and hopes to establish a base for semiconductor industry development in Vietnam." The Vietnamese government reported that during his visit, Huang met with Prime Minister Pham Minh Chinh and expressed this intention. After the meeting with Prime Minister Chinh, the Vietnamese Ministry of Planning and Investment said, "(The base Nvidia will establish) will be a place to attract global talent that will contribute to the development of Vietnam's semiconductor ecosystem and digitalization."

Vietnam is emerging as an alternative country to China due to companies' moves to decouple from China amid U.S.-China tensions. The Vietnamese government is also aiming to expand as a hub for semiconductor design and manufacturing. Vietnam hosts the world's largest semiconductor assembly plant, including U.S. semiconductor company Intel.

Nvidia is also collaborating with major Vietnamese tech companies to advance AI integration in cloud computing, electric vehicles, and the medical industry. CEO Huang had previously expressed his intention to establish a semiconductor base in Vietnam during his last Southeast Asia visit. Nvidia has already invested $250 million in Vietnam.

The U.S. government is also expanding cooperation with Vietnam. Recently, the U.S. government signed a memorandum of understanding (MOU) with the Vietnamese government to strengthen cooperation on rare earth supply used in smartphones and electric vehicle batteries. Last month, the U.S. upgraded its relationship with Vietnam from a "Comprehensive Partnership" to a "Comprehensive Strategic Partnership." After establishing a Comprehensive Partnership with Vietnam in 2013, the U.S. skipped the strategic partnership stage and elevated diplomatic relations by two levels at once.