Accordingly, in an article titled “Viettel begins construction of Vietnam's first chip plant, trial run targeted by end 2027”, Reuters reported that Vietnam's military-run telecom company Viettel on January 16 began construction of the country’s first semiconductor fabrication plant, with trial production expected to start by late 2027, as part of Vietnam’s plan to develop its own semiconductor manufacturing ecosystem.

After the 27-hectare facility, located in Hoa Lac Hi-Tech Park on the outskirts of Hanoi, completes construction and technology transfer by the end of next year, it will enter a trial phase, fine-tune production processes and upgrade equipment through 2030.

The report noted that Vietnam has emerged as a hub for semiconductor testing and packaging services, attracting global players such as Intel, Samsung Electronics, Amkor Technology, Qualcomm and Marvell Technology.

While China and Taiwan continue to dominate the back-end semiconductor manufacturing sector, including assembly, testing and packaging (ATP), Vietnam has recorded rapid growth in recent years. The country is projected to raise its share of global ATP capacity to 8%–9% by 2032, up from 1% in 2022, according to a 2024 report by the US Semiconductor Industry Association and Boston Consulting Group.

Plans for the facility also include future capacity for integrating emerging technologies, Viettel Chairman Tao Duc Thang was quoted as saying.

As part of its broader strategy, the Vietnamese government plans to train 50,000 chip design engineers by 2030 and expand the semiconductor workforce to more than 100,000 by 2040.

Meanwhile, The Business Times of Singapore on January 16 published an article titled “Vietnam takes first leap into chip fabrication with Viettel-led fab”, describing the project as a costly but symbolic step in Hanoi’s efforts to build a chipmaking ecosystem and advance along the global technology value chain.

According to the article, Viettel aims to pilot production of 32-nanometre chips by the end of 2027, following the completion of construction, technology transfer and initial installation at the facility.

From 2028 to 2030, the group plans to optimise processes and improve operations in line with industry standards, laying the groundwork for research into more advanced chipmaking technologies.

While Vietnam has gradually developed capabilities across much of the semiconductor supply chain—primarily in chip design and back-end manufacturing such as assembly, packaging and testing—it has so far lacked domestic wafer fabrication capacity.

Wafer fabrication, commonly known as a fab, is the most complex, capital-intensive and highest-value stage of semiconductor manufacturing, involving the transformation of silicon wafers into integrated circuits through dozens of precision processes.

The article said Viettel’s fab would move Vietnam into front-end manufacturing. Once operational, the plant is expected to supply chips for priority sectors including aerospace, telecommunications and automotive manufacturing.

The project aligns with Vietnam’s national semiconductor industry strategy unveiled in September 2024, which targets at least one domestic small-scale semiconductor fab by the end of 2030.

By the end of this decade, Vietnam aims to host 10 additional packaging, assembly and testing plants and around 100 chip-design companies, employing about 50,000 chip engineers and specialised workers.

Over the longer term, Vietnam aims to build a self-reliant semiconductor ecosystem by 2050, including at least three fabs, 20 packaging, assembly and testing facilities, and 300 chip-design companies, generating around US$100 billion in annual revenue.

Based on government estimates from May 2024, Vietnam had around 40 chip-design firms and five foreign-invested packaging and testing plants operated by multinational companies such as Intel, Amkor and Hana Micron. About nine semiconductor equipment manufacturers were also operating in the country.

According to the report, Hanoi has rolled out a range of incentives to support the sector, including a national programme to train semiconductor engineers and the Investment Support Fund, which provides cash grants covering operational and initial investment costs for high-tech projects, particularly in semiconductors and artificial intelligence.

In recent years, several domestic technology groups have also entered the semiconductor sector. Viettel has deployed self-designed chips for 5G base stations; FPT Corp has introduced power-management chips for healthcare Internet-of-Things applications; and CT Group has developed a domestic assembly, packaging and testing facility.

Data from the Observatory of Economic Complexity show that Vietnam exported US$32.4 billion worth of integrated circuits in 2023, ranking eighth globally, with shipments largely destined for China. Exports of semiconductor devices reached US$7.9 billion, mainly to the United States, making Vietnam the world’s fifth-largest exporter in this category.

Party leader attends groundbreaking of high-tech semiconductor manufacturing plant

VOV.VN - Party General Secretary To Lam who is also Secretary of the Central Military Commission and Head of the Central Steering Committee for science and technology development, innovation and digital transformation attended a groundbreaking ceremony for a high-tech semiconductor manufacturing plant invested by Viettel Group on January 16 at the Hoa Lac Hi-Tech Park in Hanoi.