After China Setback, Nvidia CEO Says AI Chipmaker To 'Deepen' Ties With This Southeast Asian Nation: 'We Have Millions Of Clients Here'

Nvidia Corp. (NASDAQ:NVDA), which has emerged as the AI stalwart, is planning aggressive expansion into Vietnam.

What Happened: Nvidia is looking to expand its partnership with top tech firms in Vietnam, said CEO Jensen Huang at an event in Hanoi on Monday, Reuters reported.

Huang was visiting the Southeast Asian country for the first time.

“Vietnam is already our partner as we have millions of clients here,” the top brass said. “Vietnam and Nvidia will deepen our relations, with Viettel, FPT, Vingroup, and VNG being the partners Nvidia looks to expand partnership with,” he added.

The chipmaker has so far invested $250 million in the country, as it partnered with leading tech companies to deploy AI in the cloud, automotive, and healthcare industries, the report said, citing a White House document published in September when the U.S. upgraded relations with Vietnam.

Speaking at the event, the nation’s investment minister Nguyen Chi Dung reportedly said the country has drawn up plans to incentivize investment projects in semiconductor and AI industries. He also asked Nvidia to set up an R&D facility in the country.

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Why It’s Important: For Nvidia, the diversification will likely be positive, given the issues it is facing in China following the U.S. chip ban on the country. In the third-quarter earnings release, the company warned that sales to China and other regions affected by the ban will significantly decline.

China’s loss could be Vietnam’s gain. The Vietnamese government’s measures could be aimed at grabbing much of the investments moving out of China.

The 10-Q report filed by Nvidia showed that Singapore, another Southeast Asian country, accounted for 15% of revenue in the third quarter. The number reflects the island’s nation’s emergence as a preferred tech hub for companies from both the East and the West.

Nvidia ended Friday’s session up 1.95% at $475.06, according to Benzinga Pro data.

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Photo courtesy: Nvidia Corp