Vietnamese tech giant FPT plans to build a $200 million artificial intelligence factory using Nvidia technology as the country aims to become a semiconductor and AI hub, the company announced on Tuesday.
Vietnam has long been a low-cost producer of clothing, shoes and furniture, but now it is aiming to rapidly move up the global supply chain and is putting computer chips at the center of its development plans.
FPT announced that it has established a strategic partnership with Nvidia, which includes plans to build a $200 million AI factory using Nvidia's AI software and chips.
“FPT is committed to digital transformation, AI, cloud and education… Through cooperation with NVIDIA in technology, business development and training, we are committed to achieving our vision of making Vietnam the world's AI hub ” said FPT Chairman Truong Gia. Bin said in a statement.
The factory will help FPT “accelerate the build and development of AI platforms and applications,” he said.
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Nvidia's unique role in the AI revolution has taken the world by storm, with its powerful GPU chips and software essential to creating generative AI.
Rivals like AMD and Intel are still struggling to match the power and efficiency of the company's blockbuster H100, which launches in 2022.
As part of the partnership, FPT plans to integrate Nvidia's programs into college and high school curricula to develop high-tech talent, with the aim of reaching at least 30,000 students over five years.
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The statement did not provide details on where the factory would be built.
During a visit to Vietnam last December, Nvidia CEO Jensen Huang said the US semiconductor giant wanted to establish a semiconductor base in the Southeast Asian country.
Huang also said that Nvidia has invested about $250 million in Vietnam.
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Shocks to global supply chains and concerns about US dependence on China for strategic resources are accelerating investment in Vietnam's growing semiconductor industry.
The country has about 6,000 engineers working in the semiconductor industry, and the country aims to increase that number to 50,000 by 2030.
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