US semiconductor firms mull $8bn investment in Vietnam
A US government official has revealed that 15 companies are preparing to start manufacturing to Vietnam, subject to their partners meeting renewable energy standards.
According to Bloomberg, the comments were made by Jose Fernandez, undersecretary for economic growth, energy and the environment at the State Department. He said 15 US companies were preparing to invest USD 8 billion as long as environmental and regulatory conditions were met.
“They are prepared to invest as much as $8 billion,” he told a press briefing in Hanoi. “They made commitments to shareholders and customers they will use only renewable energy,”
Vietnam and other Southeast Asian countries are becoming increasingly important to global manufacturers that are looking to re-locate away from China and Taiwan. Last year, a report by IDC anticipated that Southeast Asia will become a more significant player in the semiconductor assembly and test market, particularly in Malaysia and Vietnam. It projected that, by 2027, Southeast Asia could account for 10% of the global market, while Taiwan's share will fall to 47% from 51% in 2022.
In the last few months companies such as Shunsin, Intel, Amkor, Murata and Foxconn have invested in Vietnam-based facilities.