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HomeIndustryNvidia races to fulfill AI demand with its first Vietnam
semiconductor hub
by Sam Reynolds

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NVIDIA RACES TO FULFILL AI DEMAND WITH ITS FIRST VIETNAM SEMICONDUCTOR HUB

News
Dec 11, 20233 mins
CPUs and ProcessorsTechnology Industry
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Vietnam has been a growing tech manufacturing destination for the past few
years, and Nvidia said it is open to a new manufacturing partner in Vietnam.



Credit: Computex 2023

Nvidia is setting its sights on Vietnam with the company set to open a
semiconductor design hub in the country in 2024.

During his first visit to Vietnam, Nvidia CEO Jensen Huang announced plans to
deepen the company's relationships with key Vietnamese partners including
Viettel, FPT, Vingroup, and VNG, aiming to support Vietnam's AI training and
infrastructure, Reuters reported.

"Vietnam is already our partner as we have millions of clients here," Huang was
quoted as saying.



Recently, the White House announced a US-Vietnam Comprehensive Strategic
Partnership focusing on technological and semiconductor advancements, including
a novel Semiconductor Partnership and workforce development initiatives in
Vietnam.



The country's prime minister, Pham Minh Chinh, met with John Neuffer, CEO of the
Semiconductor Industry Association, and US semiconductor company leaders in Ha
Noi, emphasizing technology and innovation as key pillars in speeches about the
countries' relationship, a government media release said.



Vietnam's investment minister Nguyen Chi Dzung has publicly expressed the
country's readiness with mechanisms and incentives to attract semiconductor and
AI investment and requested Nvidia to consider establishing a research and
development facility in Vietnam.



Vietnam has been a growing tech manufacturing destination for the past few
years, and Nvidia management has said that the firm would be open to a third
manufacturing partner in Vietnam.

"I think there are a lot of great foundry partners. TSMC has been a great one,"
Nvidia Chief Financial Officer Colette Kress said during a recent UBS
conference. "As you know, we also use Samsung today. Would we love a third one?
Sure. We would love a third one."

Vietnam is currently home to large Samsung and Intel facilities. Samsung said it
plans to begin making chips in the country, while Intel - the likely third
partner for Nvidia - has recently shelved plans to build a fab there because of
reported concerns over power supply stability and excessive bureaucracy.




NVIDIA'S EXPANSION IN ASIA

Huang also recently paid a visit to Malaysia, where he announced a partnership
with YTL Power to establish advanced AI infrastructure in Malaysia by mid-2024,
featuring Nvidia H100 Tensor Core GPUs.

Huang is quoted as saying during the trip that he views Malaysia as a potential
AI manufacturing hub.

Huang recently promised that more high-end GPUs for AI workloads are coming -
and the company looks to be working with its partners to make that happen.



Local media in Taiwan report that Nvidia’s largest manufacturing partner, Taiwan
Semiconductor, will open its new fab in Kumamoto, Japan in February. Production
at the Kumamoto fab, a 12-inch fab with 16nm process technology, will begin in
the second quarter of 2024.

TSMC is already looking ahead as it plans to have the next fab in the country
manufacture chips on a 5nm process node, with a third fab making chips on a 3nm
process node.

TMSC founder Morris Chang met with Japan's prime minister during the recent APEC
conference in San Fransisco to discuss how the company could expand its presence
in the country.  Currently, some customers are experiencing a lead time of up to
52 weeks for shipments of some of Nvidia's most advanced GPUs.


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