Nvidia Explores Chip Design Collaboration in Vietnam

Posted:
Publication Type: ETP and Industry
Nvidia Explores Chip Design Collaboration in Vietnam

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.

NVIDIA ETPs by GraniteShares

Product name Ticker
USD EUR GBX

GraniteShares 3x Long NVIDIA Daily ETP

3LNV

3LNV

3LVP

GraniteShares 3x Short NVIDIA Daily ETP

3SNV

3SNV

3SVP

GraniteShares 3x Short FATANG Daily ETP

3SFT

3S3E

3S3P

GraniteShares 3x Long FATANG Daily ETP

3FTG

3FTE

3FTP

GraniteShares FATANG ETP

FTNG

FTNE

FTNP

GraniteShares 1x Short FATANG Daily ETP

SFTG

SFTE

SFTP

DISCLAIMER

Please note that GraniteShares' short and leveraged Exchange Traded Products are suitable only for sophisticated investors. 

This is a disclaimer stating that all trading and investing comes with risks. Always do your research and do not invest more than you can afford to spend. 

GraniteShares accepts no responsibility for any loss or damage resulting directly or indirectly from the use of this blog or the contents. GraniteShares Limited (“GraniteShares”) (FRN: 798443) is an appointed representative of Messels Limited which is authorised and regulated by the Financial Conduct Authority. 

This blog does not constitute an offer to buy or sell or a solicitation of an offer to buy securities in any company. Nothing contained herein constitutes investment, legal, tax or other advice nor is to be relied upon in making an investment or other decision. No recommendation is made positive or otherwise, regarding individual securities or investments mentioned herein. Any summary list of risk factors does not purport to be a complete enumeration or explanation of the risks involved in a particular investment. Prospective clients must consult with their own legal, tax and financial advisers before deciding to invest. This email contains the opinions of the author and such opinions are subject to change without notice. The source of data is GraniteShares unless otherwise stated. No guarantee is made to the accuracy of the information provided which has been obtained from sources believed to be reliable. This email and the information contained herein is intended only for the use of persons (or entities they represent) to whom it has been provided. Past performance is not a reliable indicator of future results.  The value of an investment may go down as well as up and can result in losses, up to and including a total loss of the amount initially invested. Investments may involve numerous risks including, among others, company risks, general market risks, credit risks, foreign exchange risks, interest rate risks, geopolitical risks and liquidity risks.  Please note that GraniteShares short and leveraged Exchange Traded Products are for sophisticated investors.