US, Vietnam semiconductor deal

To strengthen the Hanoi semiconductor ecosystem and help the US sector, the US and Vietnam signed a contract on semiconductor supply chains on Sunday.

According to the White House, under the US CHIPS Act, the US recognizes Vietnam’s potential to play a significant role in establishing resilient semiconductor supply chains, particularly to increase capacity in trustworthy partners where it cannot be re-shored to the United States and further promote manufacturing and industry development domestically.

According to a statement issued by the White House, “a newly signed Memorandum of Cooperation on Semiconductor Supply Chains, Workforce, and Ecosystem Development will formalize this bilateral partnership to expand the capacity of the Vietnamese semiconductor ecosystem in support of US industry.”

According to the statement, the United States will collaborate with Vietnam to further develop its current semiconductor ecosystem, regulatory framework, workforce, and infrastructure needs under the International Technology Security and Innovation Fund (“ITSI” Fund) created by the CHIPS Act of 2022.

Additionally, the US and Vietnam announced the beginning of extensive workforce development programs in Vietnam that will work together to create training programs and hands-on teaching labs for semiconductor assembly, testing, and packaging.

The initiatives will be launched with initial seed funding of USD 2 million from the US government, with ongoing support coming from both the Vietnamese government and the private sector. As the initiative moves further up the semiconductor industry value chain, it will assist in the expansion of solid jobs for the American middle class.

“The United States and Vietnam intend to launch a Developing Electronics and Leading Technology Advancement (DELTA) network with key regional governments and industry entities to bridge and coordinate technology strategies with like-minded partners who share our commitment to developing secure and resilient technology supply chains,” reads the statement. In light of regional trends, the DELTA Network will support the development of talent, the coordination of policies, and industry efficiency in the production of electronic components.

ADVERTISEMENT

These remarks were made following the US President’s Sunday arrival in Hanoi, Vietnam.

The US President left for Vietnam after attending the G20 Summit in India, and shortly after arriving there, he had a news conference where Vice President Biden explained how China has been attempting to alter the game’s rules in several areas, including trade.

“One of the things that is happening now is China changing the rules of the game, in terms of trade and other issues,” Joe Biden said during a news conference in Hanoi. One of the topics we covered was the Chinese government’s ban on using Western cell phones. That is the purpose of the journey. It’s less important to contain China.