Lam Research wants to develop a billion-dollar semiconductor factory in Vietnam

Hanoi, Senior Vice President of Lam Research Semiconductor Corporation - USA wishes to develop a factory and phase 1 semiconductor supply chain with capital of 1-2 billion USD in Vietnam.

On the afternoon of March 20, Mr. Karthik Rammohan, Senior Vice President of Lam Research Group, met with Prime Minister Pham Minh Chinh and representatives of Seojin Company - Korea.

Mr. Karthik Rammohan said that Lam Research is aiming to expand its operations and diversify its supply chain in the Asian region. In Vietnam, the group plans to cooperate with Seojin to develop a factory and supply chain in phase 1 with a capital of 1-2 billion USD. The advantage is that Seojin already has factories in Bac Ninh and Bac Giang.

After phase 1, the group can invest directly to expand its operations in Vietnam. To do this, Mr. Rammohan wants to participate in programs, learn about investment incentive policies and initiatives, which will create a semiconductor industry supply chain in Vietnam.

Prime Minister Pham Minh Chinh and Mr. Karthik Rammohan. Photo: VGP — Prime Minister Pham Minh Chinh and Mr. Karthik Rammohan. Photo: *VGP*

Listening to the opinions, Prime Minister Pham Minh Chinh said that the US and South Korea are both Comprehensive Strategic Partners of Vietnam. In particular, science, technology and innovation are important areas of cooperation.

As global FDI continues to shift, Vietnam wants to attract high-quality investment capital, especially leading enterprises such as Lam Research in the semiconductor industry. Therefore, Vietnam encourages investment in this field with "appropriate mechanisms and policies".

According to the Prime Minister, Vietnam is training 50,000-100,000 semiconductor engineers by 2030, meeting the human resource needs of businesses. Moreover, major suppliers in the high-tech sector such as Samsung, Intel, and Foxconn are also present in Vietnam.

In the spirit of "harmonious benefits, shared risks, working together, winning together, enjoying together, developing together", he hopes that in addition to investment and production, the two corporations will focus on research, technology transfer and development of the semiconductor ecosystem in Vietnam.

Lam Research is one of the world's leading chip manufacturing tool suppliers, founded in 1980, headquartered in California, USA. The group's revenue in 2022 was $19 billion and as of March 2023, it had more than 18,700 employees.

Vietnam is assessed to have a rapidly developing semiconductor ecosystem, with the potential to improve its position in the global supply chain. According to statistics from the US Census Bureau in February 2023, chip revenue from Vietnam imported into the US market increased by 74.9%, from 321.7 to 562.5 million USD after one year, accounting for 11.6% of the market share. However, experts say that semiconductor human resources are a challenge for Vietnam in increasing value in the chip supply chain.

Pham Du

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