Vietnam - US cooperation opens up new opportunities for semiconductor industry development

The Vietnam-US cooperation relationship has been upgraded to a Comprehensive Strategic Partnership, creating expectations and momentum for breakthrough developments in bilateral relations in the coming time, especially in the field of technology cooperation. The results of cooperation in the field of digital technology between Vietnam and the United States after Prime Minister Pham Minh Chinh's visit to the US are expected by both sides. VietNamNet introduces articles on this topic.

Article 1: Expectations of American 'tech giants' when investing in Vietnam

New opportunities for semiconductor industry development

During his recent visit to the US, Prime Minister Pham Minh Chinh suggested that businesses from Vietnam and the US focus on cooperation in a number of key areas for Vietnam, including the semiconductor industry.

During this visit, Prime Minister Pham Minh Chinh worked with many leading US corporations in the semiconductor sector. During the meetings, many US semiconductor enterprises highly appreciated the potential for developing the semiconductor industry in Vietnam.

Many opinions were exchanged and shared about investment cooperation opportunities in Vietnam, proposing cooperation methods between Vietnam and the US to successfully develop the semiconductor industry ecosystem in Vietnam. In the long term, US businesses and corporations can study the possibility of locating chip manufacturing plants in Vietnam.

Prime Minister Pham Minh Chinh suggested that American semiconductor businesses continue to cooperate and invest more deeply and extensively in Vietnam.

Prime Minister Pham Minh Chinh suggested that US semiconductor enterprises continue to cooperate and invest more deeply, widely and more in Vietnam. Thereby, creating conditions to improve the quality of human resources and capacity of Vietnamese enterprises and gradually bring Vietnam to participate more deeply in the value chain and supply chain of the global semiconductor industry in many stages from design, assembly, packaging, testing, production, etc.

The Prime Minister said that the Government and ministries will create an equal and healthy business environment, creating the best conditions for foreign enterprises to invest and operate more and more smoothly, stably, effectively and sustainably in Vietnam, including US semiconductor enterprises.

During his visit to Silicon Valley, the Prime Minister witnessed the signing ceremony of a cooperation agreement between the Ministry of Information and Communications and Synopsys to promote the development of the semiconductor industry and establish a semiconductor research institute in Vietnam.

At the meeting with Synopsys, the Prime Minister hoped that the company would continue to expand its production and supply chain in Vietnam and expected Synopsys to have technological and financial solutions for Vietnam to develop quickly and sustainably, contributing to training human resources in chip in particular and high-quality technology industry in general for Vietnam.

Afterwards, Prime Minister Pham Minh Chinh, Minister of Information and Communications and leaders of the Vietnamese delegation witnessed the signing ceremony of a cooperation agreement between the Department of Information and Communications Technology Industry (Ministry of Information and Communications) and Synopsys to support the development of Vietnam's semiconductor industry.

Accordingly, the Information and Communications Technology Industry Agency plans to establish a Semiconductor Research Institute. This cooperation aims to draft a strategy to establish an advanced R&D simulation and manufacturing center, nurture startups in advanced microchip design, and support R&D manufacturing capacity in Vietnam.

Also here, the Prime Minister and delegates witnessed the announcement ceremony of cooperation with the National Innovation Center, under the Ministry of Planning and Investment, to develop talented human resources for microchip design in Vietnam, in which Synopsys supports NIC to establish a chip design incubation center.

Prime Minister Pham Minh Chinh, Minister of Information and Communications Nguyen Manh Hung and leaders of the Vietnamese delegation witnessed the signing ceremony of a cooperation agreement between the Department of Information and Communications Technology Industry (Ministry of Information and Communications) and Synopsys.

Vietnamese enterprises participate in the global semiconductor market

During Prime Minister Pham Minh Chinh’s visit to the US, FPT Semiconductor signed a strategic cooperation agreement with Silvaco. According to the newly signed agreement, FPT Semiconductor and Silvaco committed to cooperating in developing semiconductor human resources for semiconductor companies in the US.

Specifically, Silvaco, FPT Semiconductor, and FPT University committed to cooperate in developing human resources for semiconductor companies in the US. The parties also cooperated to establish the Vietnam Semiconductor Training Center, promoting human resource development according to the Government's program.

In addition, FPT provides IP (Intellectual Property) on Silvaco's platform for this enterprise to provide to customers. Silvaco and FPT also cooperate to develop business in the fields of StandardCell, IO, Memory design. In the long term, Silvaco will become a strategic investor of FPT Semiconductor.

FPT Semiconductor is also the exclusive representative and distributor of Silvaco’s software in the semiconductor industry in Vietnam. Founded in 1984, Silvaco is a semiconductor, automation and technology software company. The company is headquartered in Santa Clara, California and has offices in North America, Europe and throughout Asia.

According to Minister of Planning and Investment Nguyen Chi Dung, this is the next step in implementing cooperation activities between organizations and enterprises in the US semiconductor industry with Vietnamese partners to bring opportunities to expand the market and enhance Vietnam's capacity in this industry.

Previously, on September 11, during US President Joe Biden's visit to Vietnam, FPT Chairman Truong Gia Binh announced the investment strategy in the US, developing high-quality human resources in the field of artificial intelligence (AI) and promoting the development of the semiconductor industry in Vietnam.

FPT also announced a comprehensive strategic cooperation with LandingAI - a pioneer in the field of machine vision and artificial intelligence in Silicon Valley (USA) to accelerate the process of bringing AI into training at the FPT Education system.

FPT is the first enterprise in Vietnam to produce commercial chips, focusing on designing power chips according to customer orders. Currently, FPT is focusing on expanding the semiconductor and artificial intelligence sectors.

Vietnamese technology enterprises invest in the US market

At the “Vietnam – US Business Forum on Cooperation in Technology and Innovation” on September 18, witnessed by Prime Minister Pham Minh Chinh, Vietnamese technology company Rikkeisoft announced an investment of more than 30 million USD until 2026 in the US market to focus on developing high-quality technology human resources, expanding the market and mergers and acquisitions activities.

Rikkeisoft’s representative in the US said that the investment of 10-30 million USD in the next 3 years will be focused on developing high-quality technology human resources, expanding the market and M&A activities. Specifically, the investment in 2023 is 2 million USD and will increase to 30 million USD by 2026.

This investment is expected to create hundreds of technology jobs for the US market, helping Rikkeisoft become a billion-dollar technology company in the next 5 years.

RKTech, a subsidiary of Rikkeisoft in the US market, was established in early 2023 in Dallas, Texas, with the goal of providing high-quality comprehensive technology solutions and services to US customers. To date, RKTech has achieved initial success in expanding its business network in the US with partners in the manufacturing and automotive sectors.

Mr. Bui Hoang Tung, Senior Vice President of Rikkeisoft, said that the abundant source of high-quality and reasonably priced technology human resources from Vietnam helps us confidently provide value-added services to US customers. Rikkeisoft's goal is not simply to IPO in the US in 2028, but to become a part of the US technology landscape by providing sustainable solutions for talent supply.

Rikkeisoft Chairman Ta Son Tung shared that the US market is a strategic investment for Rikkeisoft. “The company aims to become a global technology services company with a market capitalization of 1 billion USD. Therefore, a large market like the US can help Rikkeisoft achieve this goal,” he said.

Sharing with VietNamNet about the strategy of going abroad, Rikkeisoft Chairman Ta Son Tung said: “We are successful in the Japanese market, but Rikkeisoft wants to advance to the US market because simply this is the largest market. We see that most of the top 500 corporations are located in the US. Therefore, planting the flag in the US is important but also challenging for any company,” Mr. Ta Son Tung shared.

The expectations of American 'technology giants' when investing in Vietnam The announcement of a series of ambitious projects by American technology companies shows their expectations about investment opportunities in Vietnam in the near future.

Source