Boosting Semiconductor Ecosystem
Collaboration Aims to Expand Technical Workforces and Attract Industry Investments
In a groundbreaking move to bolster the global semiconductor industry, the U.S. State Department has forged a strategic partnership with the Government of Vietnam. This pioneering collaboration falls under the purview of the International Technology Security and Innovation (ITSI) Fund, a creation of the CHIPS Act of 2022. The central goal of this alliance is to cultivate a more robust, secure, and sustainable semiconductor value chain on the world stage.
Vietnam Emerges as a Key Partner
Diversification and Resilience at the Forefront
The semiconductor supply chain is the linchpin of today’s economy, powering an array of products, from vehicles to medical devices. Recognizing this, the U.S. State Department and Vietnam are teaming up to fortify the foundation upon which modern commerce thrives. Vietnam, with its established strengths in assembly, testing, and packaging, emerges as a promising partner in ensuring diversity and resilience in the semiconductor sector.
A Collaborative Endeavor
Shaping the Future of Semiconductor Industry
This collaborative endeavor will kick off with a comprehensive assessment of Vietnam’s existing semiconductor ecosystem. It will delve into the country’s regulatory framework and ascertain its workforce and infrastructure needs. The outcomes of this assessment will serve as the compass for potential future collaborations, with the ultimate goal of nurturing and advancing this critical sector.
The CHIPS Act of 2022: A Transformative Step
Funding to Secure the Future of Semiconductors
The genesis of this partnership can be traced back to August 2022 when President Biden signed into law the CHIPS Act of 2022. This landmark legislation earmarked substantial funding to rejuvenate domestic semiconductor manufacturing and research in the United States.
At the core of the CHIPS Act is the ITSI Fund, a financial cornerstone that provides the U.S. Department of State with a hefty $500 million allocation. This fund is distributed over five years, commencing in Fiscal Year 2023, with an annual infusion of $100 million.
The primary objective of the ITSI Fund is to spearhead the development and adoption of secure and trustworthy telecommunications networks. It also aims to fortify semiconductor supply chain security and diversification through pioneering programs and initiatives, involving collaboration with allies and partners across the globe.
Sources: THX News & US Department of State.
