Vietnam Aims to Secure Funding from Chips Act

Vietnam is among the countries that could potentially receive funding from the US Chips and Science Act, according to Jose Fernandez, the U.S. undersecretary of state for economic growth, energy, and the environment. The Act has allocated $500 million to improve semiconductor training, cybersecurity, and business climates globally. Fernandez made this announcement during his visit to Vietnam, as reported by the Nikkei.

The Organization for Economic Cooperation and Development (OECD) is set to make recommendations in February on which countries should receive these investments. Vietnam, being the third largest exporter of semiconductors to the US after Malaysia and Taiwan, is a strong contender for the funding.

With an expected revenue of $20 billion this year and a projected compound annual growth rate (CAGR) of 9.62% from 2024 to 2027, Vietnam's semiconductor industry is thriving. Additionally, the country possesses the world's second largest reserves of rare earth metals, making it an attractive source for the US, which is eager to secure a reliable supply of these materials.

The funding from the US Chips and Science Act would greatly benefit Vietnam's semiconductor industry. It would enable the country to further enhance its semiconductor training programs, strengthen its cybersecurity measures, and improve its business climate. This investment would not only boost Vietnam's economy but also contribute to the global advancement of semiconductor technology.

As the OECD prepares to make its recommendations, Vietnam remains hopeful that it will be selected as one of the countries to receive funding. The outcome of this decision will have a significant impact on Vietnam's semiconductor industry and its position as a key player in the global semiconductor market.