The U.S. chipmaker Nvidia signed an agreement to establish an artificial intelligence research and development center in Vietnam, a few weeks after the U.S. announced a semiconductor export control package against China, one of the American firm’s key markets.
Vietnam has recently become an attractive place for Western companies looking for ways to reduce their reliance on China, as geopolitical tensions between Washington and Beijing intensify.
“We are delighted to open Nvidia’s R&D center to accelerate Vietnam’s AI journey,” said Jensen Huang, founder and CEO of Nvidia, in a statement on Thursday, referring to the research and development center.
“With our expertise in AI development, we will partner with a vibrant ecosystem of researchers, startups and enterprise organizations to build incredible AI right here in Vietnam.”
The agreement, signed in Hanoi in the presence of Huang and Prime Minister Pham Minh Chinh, will involve the expansion of an AI data center belonging to the Vietnamese military-owned Viettel Group, which already uses Nvidia technology.
“The new center will develop valuable platforms for Nvidia and partners to nurture AI innovation,” said Nvidia in the statement.
“Researchers and startups will be able to use this infrastructure to develop AI applications for key industries such as healthcare, education, transportation and finance,” the company said
Nvidia’s agreement came a few weeks after the U.S. announced a new semiconductor export control package against China, curbing exports to 140 companies, its latest major effort to block China’s access to and production of chips capable of advancing artificial intelligence for military purposes.
In response, China retaliated, tightening controls on the export of key raw materials to the U.S. and cautioning Chinese companies against buying American chips.
Nvidia has been a key supplier of high-performance GPUs and AI chips to Chinese companies. In the July quarter of 2024, China accounted for approximately 12% of Nvidia’s revenue, amounting to about US$3.7 billion – a more than 30% increase from the previous year.
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Although Huang said in November that the chipmaker remained committed to maintaining its presence in mainland China, the U.S. chipmaker has also been eyeing ways to reduce its reliance on China.
During his visit to Hanoi late last year, Huang said that his firm was committed to investing in Vietnam and making it a “second home.”
At that time, he said the company planned to expand its partnerships with Vietnam’s top tech firms and support it in training talent for developing AI and digital infrastructure.
Last year, Nvidia partnered with Vietnamese AI and cloud computing service provider FPT Smart Cloud. In April, FPT announced that it and Nvidia would build a US$200 million AI “factory” using Nvidia’s graphic chip and software.
Apart from Vietnam, Nvidia has increased partnerships and investments in other Southeast Asian countries in recent years including Thailand, Malaysia, Indonesia and Singapore.
Edited by RFA Staff.