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By Francesco Guarascio
HANOI (Reuters) – Vietnam is holding talks with chips firms with the intention of boosting funding within the nation and presumably constructing its first chipmaking plant, or fab, two enterprise executives mentioned, regardless of warnings from U.S. business officers about excessive prices.
The Southeast Asian electronics manufacturing hub already hosts U.S. big Intel’s largest semiconductor packaging and testing plant worldwide and is dwelling to a number of chip designing software program companies. It’s engaged on a technique to draw extra semiconductor funding, together with from foundries, which deal with manufacturing chips.
Conferences with half a dozen U.S. chip companies befell in latest weeks, together with with fab operators, Vu Tu Thanh, head of the Vietnam workplace of the US-ASEAN Enterprise Council, advised Reuters. He declined to establish the companies as a result of talks have been nonetheless at a preliminary stage.
A chip government, who declined to be recognized as a result of he was not allowed to speak to media, mentioned talks with potential traders have concerned U.S. contract producer GlobalFoundries and Taiwan’s PSMC.
The intention was to construct Vietnam’s first fab, more than likely for much less superior chips utilized in vehicles or for telecoms functions, the chief added.
The conferences adopted an historic improve of formal ties between Vietnam and the U.S. in September, when President Joe Biden visited Hanoi and the White Home described the previous foe as probably a “essential participant” in semiconductor international provide chains.
GlobalFoundries attended a restricted enterprise summit throughout Biden’s go to after an invite from the president himself, the corporate mentioned, however has since proven no instant curiosity in investing in Vietnam, an individual aware of the matter mentioned.
“We don’t touch upon market rumors,” a GlobalFoundries spokesperson mentioned when requested about subsequent contacts. PSMC didn’t reply to a request for remark.
Trade officers mentioned conferences at this stage have been principally to check curiosity and focus on potential incentives and subsidies, together with on energy provides, infrastructure and the supply of educated workforce.
The Vietnamese authorities has mentioned it desires its first fab by the tip of this decade and on Monday mentioned chip firms would profit from “the very best incentives accessible in Vietnam”.
It could additionally help native companies equivalent to state-owned tech firm Viettel to construct fabs with imported tools, Hung Nguyen, senior program supervisor on provide chains at Hanoi’s College Vietnam, advised Reuters.
Viettel didn’t reply to a request for remark.
$50 BILLION BET
Nonetheless, Robert Li, Vice President of U.S. Synopsys, a number one chip design agency with operations in Vietnam, urged the federal government to “suppose twice” earlier than doling out subsidies to construct fabs.
Talking at “Vietnam Semiconductor Summit” in Hanoi on Sunday, he mentioned constructing a foundry might price as a lot as $50 billion, and would entail competing on subsidies with China, the U.S., South Korea and the European Union which have introduced spending plans on chips between $50 and $150 billion every.
John Neuffer, President of the U.S. Semiconductor Trade Affiliation, on the identical convention advisable the federal government deal with chip sectors the place Vietnam was already robust, equivalent to assembling, packaging and testing.
(Reporting by Francesco Guarascio @fraguarascio; extra reporting by Khanh Vu in Hanoi and Fanny Potkin in Singapore; Modifying by Lincoln Feast.)
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