The United States showed goodwill to rare earths for 2 million, and Japan s rare earth deal faile

Mondo Finance Updated on 2024-01-28

The United States "showed goodwill" to rare earths for $2 million, and Japan's rare earth deal failed

Many people say that rare earths are in our country"Chip Wars".

That's true. It's just that rare earths are not just our Chinese market, which is why after controlling the export of gallium and germanium, US semiconductors are not worried about us playing their game with rare earths, but deepen the restrictions.

In addition to China, Vietnam is the second largest country in rare earth reserves, so the former United States has to make an idea in Vietnam.

According to relevant information, Biden and Vietnamese leaders have signed a rare earth agreement dominated by semiconductors, claiming that this is to further improve Vietnam's position in the global semiconductor chain. In addition, the United States will provide $2 million in seed funding to Vietnam to help Vietnam further increase its chip production capacity in Vietnam. Biden's words play into Vietnam's hands.

On the one hand, Vietnam is committed to the development of the semiconductor industry, for example, in 2009, Vietnam launched a semiconductor program to attract large companies to invest. The program attracted companies such as Intel, Samsung, and Texas Instruments. However, while they have attracted chipmakers from around the world, their over-reliance on foreign direct investment has hindered Vietnam's own rise. To put it bluntly, without these foreign companies, Vietnam may not be able to produce semiconductors locally. It is difficult for Vietnam to gain a foothold in the world market.

Now that the U.S. has made this breakthrough, it means that Vietnam will not only increase its production capacity, but will also be more likely to receive more investment from U.S. semiconductor companies.

On the other hand, although Vietnam also has rare earth reserves, it has not been able to seize the opportunity. Because their light rare earths are difficult to compare with heavy rare earths, they can only seek rare earths from the Chinese market in the past, and it is difficult for the rare earth industry to create its own value in Vietnam. This time, the United States just sent this opportunity, and Vietnam was naturally willing, although it may make them become"Chip Wars""Cannon fodder", but also irresistible**.

At this moment, we can assume that the $2 million support fund was given by the United States"Appetizers"The aim is to make Vietnam willingly become an alternative to rare earths. In addition, the United States may have a more ambitious idea, which is to rely on Vietnam to pose a direct threat to our country in the rare earth industry. But foreign ** believes that this is difficult to succeed, after all, Japan has also failed in the past.

As mentioned earlier, Vietnam is the world's second largest producer of rare earths. Of course, in this case, there will be no one who will not have the idea of fighting Vietnam. Japan was one of them, but it ultimately failed. The main reason is that its mining industry chain is not perfect, the equipment is not advanced, and rare earth mining simply cannot meet the demand for semiconductors in Japan. What's more, they also found that although there were alternatives, they still couldn't get around China's technical support. As a result, it is also difficult for Vietnam to gain a real foothold in the rare earth industry.

Now, even if the United States joins, it will be difficult to threaten the position of our country in a short time. After all, the United States itself is also a mess in rare earth technology, and if it can replace us at the beginning, they don't have to start acting now, it is precisely this kind of operation that is very difficult, and they are delaying it again and again. Only now it seems that it is difficult for them to compete with us in the field of semiconductors, which will surely be surpassed by Vietnam.

It is estimated that at the moment Vietnam thinks that it has picked up a bargain. But I personally think that the United States will not be so kind and exchange the necessary minerals for the development of semiconductors, can you guarantee that these things will still be in their own hands in the end?

What are your thoughts on this?Comments, likes and shares are welcome!

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