Nvidia Explores Chip Design Collaboration in Vietnam
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The US Chipmaker Nvidia's CEO Jensen Huang on December 11, said that he sees Vietnam as a possible second headquarters for the Silicon Valley company. According to reports from Vietnamese media, the company intends to establish a legal entity in the Southeast Asian nation. The company plans to expand its collaboration with leading Vietnamese tech companies and assist the country in cultivating expertise for the advancement of artificial intelligence (AI) and digital infrastructure.
Furthermore, Vietnam, a Southeast Asian country with significant chip assembling facilities, including Intel's largest global plant, is aiming to diversify into chip design and potentially chip manufacturing. The move comes as trade tensions between the United States and China open up opportunities for Vietnam in the strategic semiconductor industry.
The Partnership Talks
Jensen Huang on December 11 met with representatives from the Vietnamese tech companies and authorities to explore strategies for enhancing the semiconductor industry in Vietnam. The invitation letter for this exclusive event explicitly mentions discussions focusing on the potential collaboration between NVIDIA and Vietnamese tech firms.
During a semiconductor and artificial intelligence conference in Hanoi hosted by a Vietnam ministry on Monday, Jensen Huang announced that NVIDIA would establish a design center in Vietnam. Moreover, it was also disclosed on December 10, based on information from a meeting between Jensen Huang and Vietnamese Prime Minister Pham Minh Chín, that NVIDIA had previously invested approximately $250 million in Vietnam, according to the government's news website.
NVIDIA, having invested $250 million in Vietnam, has collaborated with key technology firms to implement artificial intelligence in the cloud computing, automotive, and healthcare industries. This information was disclosed in a document published by the White House in September, coinciding with the upgrade of diplomatic relations between Washington and Vietnam.
Moreover, around September the US State Department under the Chips Act announced a partnership with Vietnam. This act will provide $500 million in incentives over five years and is designed to safeguard the semiconductor supply chain security, reflecting the commitment to fortify collaboration between the United States and Vietnam in this critical industry.
Furthermore, the US Semi-Conductor Industry Association President John Neuffer along with representatives from American companies had a meeting with Vietnamese Prime Minister Pham Minh Chinh earlier this month to further discussions on this initiative.
Strengths of Vietnamese Tech
One of the major advantages lies in the competitive labor costs offered by Vietnam. This allows European and US SMEs to maintain high-quality work while achieving substantial cost savings. This advantage could be pivotal in the production phase of chip design, potentially optimizing manufacturing processes for the collaborative project.
Additionally, the Vietnamese government has been actively promoting the development of the tech industry, offering incentives, support programs, and infrastructure development. Also, there is a cohort of young, dynamic individuals with a high literacy rate, securing the 30th position out of the 50 nations comprising the continent. Fueled by a robust foundation in scientific education, the Asian dragon is cultivating an abundant pool of talent in computer development.
Bottom Line
Nvidia is willing to collaborate with Vietnamese leading tech companies to enhance the country's artificial intelligence (AI) development and infrastructure as well as the workforce. CEO Jensen Huang expressed admiration for Vietnam's abundance of computer scientists and its global leadership in software exports, stating that the nation has the potential to produce a million AI engineers. This collaboration aligns with Nvidia's commitment to contribute to Vietnam's growing expertise in AI.
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