US officials warn of high costs as Vietnam looks to build its first semiconductor plant

Vietnam is engaged in discussions with semiconductor companies with the goal of increasing investments in the country, potentially even constructing its inaugural chip fabrication plant, or “fab,” as indicated by two business executives. This move comes in spite of cautions from U.S. industry representatives regarding elevated costs.

Vietnam, known as a prominent electronics manufacturing center in Southeast Asia, is already home to the largest semiconductor packaging and testing facility worldwide for U.S. giant Intel. It also accommodates various software firms specializing in chip design. The country is actively formulating a strategy to attract additional investments in the semiconductor sector, including from foundries dedicated to chip manufacturing.

In recent weeks, discussions have been held with around six U.S. chip companies, including fab operators, as stated by Vu Tu Thanh, who serves as the head of the Vietnam office of the US-ASEAN Business Council, in communication with Reuters. However, he refrained from disclosing the names of the companies since the discussions are in their initial stages.

Additionally, an executive within the chip industry, who opted to remain anonymous due to media restrictions, mentioned that talks with prospective investors have encompassed U.S. contract manufacturer GlobalFoundries and Taiwan’s PSMC.

The objective was to establish Vietnam’s inaugural fab...


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