Foreign investors to develop $2 billion chip manufacturing project in Vietnam

Lam Research, a US-based company, plans to partner with South Korea's Seojin Vietnam to develop a semiconductor chip manufacturing plant with an initial investment of US$1-2 billion. 

Karthik Rammohan, Group Vice President and Head of Global Operations at Lam Research (left) and Prime Minister Pham Minh Chinh. Photo: VGP

This information was released during Prime Minister Pham Minh Chinh's meeting with Lam Research and Seojin Company (South Korea) in Hanoi on March 20.

After the initial phase, the US company will consider direct investment and expansion in the South Asian country, said Lam Research Group Vice President and Head of Global Operations.

Headquartered in California, Lam Research is one of the world's leading suppliers of semiconductor chip manufacturing equipment. The company generated $19 billion in revenue in 2022 and has more than 18,700 employees as of March 2023.

Karthik Rammohan emphasized that Lam Research is looking to expand its operations and diversify its supply chain in the Asian region.

He expressed interest in understanding Lam Research's investment incentives and initiatives to support and promote semiconductor industry suppliers and supply chain ecosystems in Vietnam.

A Seojin representative stressed that the project is of great importance to both companies. The South Korean firm has factories in the northern provinces of Bac Ninh and Bac Giang.

During the event, government officials provided an overview of the favorable policies and conditions in the targeted investment locations for the two corporations.

Speaking at the meeting, Prime Minister Pham Minh Chinh said that the US and South Korea are both comprehensive strategic partners of Vietnam, with science, technology and innovation being important areas of cooperation.

He stressed that Vietnam welcomes and encourages investors in this field with appropriate and specific mechanisms and incentives, as well as the development of modern and synchronized infrastructure.

As global FDI continues to shift, Vietnam aims to attract high-quality investment capital, especially from leading companies such as Lam Research in the high-tech and semiconductor industries, the Prime Minister said.

He highlighted Vietnam's commitment to train 50,000 to 100,000 engineers by 2030. Major players in the high-tech industry, such as Samsung, Intel, Foxconn, and others, have already established a presence in Vietnam. Many other leading global companies continue to explore opportunities and plan investments in Vietnam.

The Prime Minister expects the two corporations to prioritize research and development, technology transfer, and the growth of Vietnam's semiconductor ecosystem in addition to their investment and production activities.

He suggested that they continue to work specifically with relevant agencies and localities to implement tasks and procedures in accordance with the law.