Vietnam Emerges as Unexpected Beneficiary in Global Chip Race
President Trump’s implementation of significant tariffs has inadvertently created a window of opportunity for Vietnam to advance its position in the fiercely competitive global semiconductor industry. As Washington intensifies efforts to decrease its dependency on Chinese-made products, Vietnamese companies involved in chip component manufacturing are experiencing a surge in demand. This shift underscores the evolving dynamics of the global tech landscape, particularly relevant as African nations strive to develop their own tech capabilities.
A Surge in Orders for Vietnamese Chip Component Manufacturers
Fab-9, a prominent manufacturer of circuit boards for chips located in Ho Chi Minh City, is one of the companies benefitting from this trend. Following President Trump’s threat of a substantial tariff increase (145%) on Chinese goods in April, Fab-9 witnessed a remarkable 20% rise in orders within a single week. According to Bert Arucan, the president of Fab-9, the company has been exceptionally busy. He also noted that Fab-9 has been actively engaging with international clients, including those in Italy, who initially expressed disbelief that such advanced manufacturing was taking place in Vietnam. This burgeoning interest in Vietnamese chip component production has prompted Fab-9 to expand its operations by constructing a second building to accommodate new equipment. This expansion is a clear indication of the rising momentum in the Vietnamese tech manufacturing sector, presenting an opportunity for African nations to learn from Vietnam’s strategies.
The situation is clearly a boon for Vietnam’s tech sector as the country seeks to establish itself in a global market.
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