Top U.S. semiconductor and digital technology companies, comprising industry leaders like Intel, Google, Amkor, GlobalFoundaries, and Boeing, are set to convene for a significant business summit during President Joe Biden’s visit to Vietnam, as reported by Reuters. This gathering follows President Biden’s participation in the G20 Summit 2023 held in India and is part of a broader strategy aimed at managing risks associated with China, including trade restrictions and tensions concerning Taiwan. The meeting anticipates the attendance of senior executives from Google, Intel, Amkor, Marvell, GlobalFoundries, and Boeing.
During President Biden’s visit to Hanoi, semiconductors are expected to take center stage. This summit, attended by approximately 30 top executives and officials, seeks to strengthen the relationship between the United States and Vietnam. However, specific announcements or initiatives from the participating companies have not been disclosed at this time.
Several companies, most notably Intel, have already made substantial investments in Vietnam. Intel operates a $1.5 billion chip assembly, packaging, and testing facility located in southern Vietnam, with plans for future expansions. Similarly, Amkor, as announced by Treasury Secretary Janet Yellen in July, is in the process of constructing a state-of-the-art semiconductor assembly and testing mega factory near Hanoi. Chip design firm Marvell has also expressed its intentions to establish a world-class center in Vietnam.
Vietnam’s growth in chip manufacturing is expected to primarily focus on assembly and design, although the shortage of skilled engineers in the field may present some challenges. The country also aspires to develop its chipmaking capabilities, with GlobalFoundries specializing in integrated circuit production for a range of applications, including smartphones and automobiles.
Moreover, Vietnam’s government has initiated discussions with major chip industry players such as Intel, Samsung, and Qualcomm, seeking their expertise in establishing the country’s inaugural fab.
In addition to the semiconductor sector, the strengthening of formal ties between the United States and Vietnam holds the potential for collaboration in artificial intelligence (AI). Google, a global leader in AI technologies, is well-positioned to play a significant role in this prospective partnership. Vingroup, Vietnam’s largest conglomerate and the parent company of Nasdaq-listed electric car manufacturer VinFast, houses a dedicated AI unit within its operations.
Lastly, the report suggests that Boeing may unveil a significant deal involving the sale of 50 of its 737 MAX jets during this gathering, further cementing the robust business connections between the United States and Vietnam.
In summary, the meeting between top executives from major U.S. tech and semiconductor companies with President Joe Biden during his visit to Vietnam underscores the significance of strengthening bilateral ties between the two nations. This strategic gathering holds the potential to foster collaboration not only in the semiconductor and tech sectors but also in emerging fields such as artificial intelligence. Additionally, the reported deal involving Boeing’s aircraft sale emphasizes the multifaceted nature of the relationship, highlighting the importance of such diplomatic and business engagements in the global landscape.