US and Vietnam signed deal on semiconductor supply chains to expand in support of US industry

The United States and Vietnam have signed a deal on semiconductor supply chains to expand the capacity of the semiconductor ecosystem in Hanoi, in support of the US industry. The White House in a statement, Yesterday, said that the US recognizes Vietnam’s potential to play a critical role in building resilient semiconductor supply chains, particularly to expand capacity in reliable partners where it cannot be re-shored to the United States and further promote manufacturing and industry development at home under the US CHIPS Act.

The White House also said that a newly-signed Memorandum of Cooperation on Semiconductor Supply Chains, Workforce and Ecosystem Development will formalize this bilateral partnership to expand the capacity of the semiconductor ecosystem in Vietnam, in support of US industry. The US and Vietnam also announced the launch of comprehensive workforce development initiatives in Vietnam that jointly develop hands-on teaching labs and training courses for semiconductor assembly, testing, and packaging.

The US government will provide initial seed funding of 2 million US Dollars to launch the initiatives, in conjunction with future support from the Government of Vietnam and the private sector. After attending the G20 Summit in India, the US President departed for Vietnam and within a few hours of reaching there, he held a press conference where Biden discussed how China has been trying to change the rules of the game in various aspects, including trade.