The United States and Vietnam, on Sunday, signed a deal on semiconductor supply chains to expand the capacity of the semiconductor ecosystem in Hanoi, in support of the US industry.
As per the White House, the US recognizes Vietnam’s potential to play a critical role in building resilient semiconductor supply chains, particularly to expand capacity in reliable partners where it cannot be re-shored to the United States and further promote manufacturing and industry development at home under the US CHIPS Act.
“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 semiconductor ecosystem in Vietnam, in support of US industry,” the statement read, released by the White House.
As per the statement, the United States, under the International Technology Security and Innovation Fund (“ITSI” Fund) created by the CHIPS Act of 2022, will partner with Vietnam to further develop Vietnam’s current semiconductor ecosystem, regulatory framework, and workforce and infrastructure needs.
The US and Vietnam also announced the launch of comprehensive workforce development initiatives in Vietnam that jointly develop hands-on teaching labs and training courses for semiconductor assembly, testing, and packaging. The US government will provide initial seed funding of USD 2 million to launch the initiatives, in conjunction with future support from the Government of Vietnam and the private sector. The effort will support the expansion of good jobs for the American middle class to work further up the semiconductor industry value chain.
As per the statement, “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 that share our commitment to building secure and resilient technology supply chains. The DELTA Network will promote talent cultivation, policy coordination, and sector efficiencies in the manufacture of electronic components, against the backdrop of regional trends,” the statement read.
These statements came after the US President arrived in Hanoi, Vietnam on Sunday.
After attending the G20 Summit in India, the US President departed for Vietnam and within a few hours of reaching there, he held a press conference where Biden discussed how China has been trying to change the rules of the game in various aspects, including trade.
Addressing a press conference in Hanoi, Joe Biden said, “One of the things that is happening now is China changing the rules of the game, in terms of trade and other issues. One of the things we talked about, is no one of the Chinese government can use a Western cellphone. That’s what the trip is about. It’s less about containing China”.
The US President further said that the purpose of the Quad – a security dialogue involving India, the US, Australia, and Japan, is not intended to isolate China but to maintain stability in the Indo-Pacific region.
