During the historic visit of U.S. President Joseph R. Biden to the Vietnamese government in September 2023, one of the proposed strategic collaborations was a semiconductor partnership aimed at bolstering the semiconductor supply chain forboth countries. Vietnam currently plays a pivotal role in the global semiconductor sector, primarily focused on assembly, testing, and packaging. The U.S. recognizes Vietnam's potential, given the scale of its electronics industry, to drive the development of the semiconductor microchip sector, starting with design and packaging.

As a result, a memorandum of understanding on semiconductor supply chain, labor force, and ecosystem development hasbeen formally established to expand the capabilities of the semiconductor ecosystem in Vietnam and advance the industries of both nations. The U.S. government will provide an initial grant of USD 2 million to kickstart comprehensive workforce development initiatives in Vietnam, along with future support from the respective government.

With the concerted efforts of the Vietnamese government, participation of local businesses, and collaboration with global chip manufacturers, countries like the U.S., the semiconductor industry in Vietnam has the potential to become a beacon of economic growth in the next 5-7 years.

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