HANOI: US chip giant Nvidia wants to set up a base in Vietnam to develop its semiconductor industry, its CEO was quoted as saying by the Vietnamese government.

Jensen Huang, chairman and CEO of the Silicon Valley chip titan, is visiting the Southeast Asian country as it looks to boost investment in its growing semiconductor industry.

During a meeting with Vietnam’s Prime Minister Pham Minh Chinh, Huang said Nvidia wants to set up a base in the country, according to a report published late Sunday on the government’s official website.

The report said Huang rated Vietnam’s potential in the IT sector highly, and said Nvidia had invested around $250 million in the country.

Several chip giants have opened or expanded their activities in Vietnam.

In October, South Korean company Amkor opened a new $1.6 billion dollar packaging factory while Hana Micron opened a $600 million packaging factory a month earlier.

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During a visit to Hanoi in September, US President Joe Biden committed to helping the communist nation develop its capabilities and expand production.

Global supply chain shocks and fears about the United States’ reliance on China for strategic resources are boosting investment in the growing semiconductor industry in Vietnam.

Vietnam has around 6,000 engineers in the semiconductor industry but it needs thousands more. It aims to increase the number to 50,000 by 2030.