US semiconductor giant Nvidia has announced it will open a research and development center in Vietnam. This is the latest move by Western chipmakers to invest in Southeast Asia.

Nvidia founder and CEO Jensen Huang agreed on the move during talks on Thursday in Hanoi with Vietnamese Prime Minister Pham Minh Chinh. The research center will be the company's first in the country.

Huang told reporters after the close-door meeting that the center will focus on AI, software and systems technology. He said the center will lead to "populating a large number of AI researchers" in Vietnam.

Vietnam has been looking to become a hotbed for semiconductor manufacturing by leveraging its young population. The government aims to train 50,000 engineers to work in the industry by 2030.

More chipmakers are setting their eyes on Southeast Asia as they try to diversify their investment destination amid tensions between the United States and China.

Intel has announced it will invest 7 billion dollars in Malaysia. The company is now building semiconductor plants there.