Vietnam Extends an Invitation to TSMC and GlobalFoundries, Plans to Construct Its First Wafer Plant

Reuters cites two industry insiders revealing that Vietnam is in discussions with major chip manufacturers such as TSMC and GlobalFoundries, hoping to attract foreign investments to help build its first wafer plant. While Vietnam has already made contact with wafer foundries like TSMC and GlobalFoundries, U.S. officials have issued warnings about the high costs involved.

Vietnam currently hosts Intel’s largest semiconductor packaging and testing facility globally and has several semiconductor software design companies stationed in the country. However, their goal is to attract more semiconductor investments, including wafer foundries primarily focused on chip manufacturing.

Vu Tu Thanh, the Chief Representative of the American Chamber of Commerce in Vietnam, told Reuters that in the past few weeks, they have held meetings with six American chip companies, including wafer operation firms. As they are still in the initial stages, he declined to disclose the list of companies.

An unnamed high-level source mentioned that the Vietnamese government has engaged with TSMC and GlobalFoundries with the aim of establishing Vietnam’s first wafer plant, possibly focusing on chips for applications in automobiles or electronics with relatively less advanced processes.

U.S. President Biden visited Vietnam in September, aiming to strengthen the relationship between the United States and Vietnam. Biden has described Vietnam as a potential crucial link in the global semiconductor supply chain.

GlobalFoundries stated that they were invited by President Biden and visited Vietnam during that time. However, sources have indicated that after the meeting, GlobalFoundries has not immediately expressed interest in investing in Vietnam.

U.S. officials have conveyed that the current stage primarily involves assessing the willingness of both parties and discussing potential incentives and subsidies, including power subsidies, infrastructure, and the availability of experienced labor.

The Vietnamese government has expressed its hopes to construct the first wafer plant before 2030 and announced on Monday (10/30) that semiconductor companies investing in Vietnam can receive the highest subsidies currently available in Vietnam.