[Latest News] Vietnam Breaks Ground on Its First Semiconductor Chip Manufacturing Plant

Vietnam has officially begun construction of its first semiconductor chip manufacturing plant, marking a major milestone in the country’s efforts to develop a domestic semiconductor industry. The groundbreaking ceremony took place on January 16 in Hoa Lac High-Tech Park, Hanoi, with the participation of top leaders including General Secretary Tô Lâm and Prime Minister Phạm Minh Chính.

The project is led by the Vietnam Military Telecommunications Group (Viettel) under a Government resolution and aims to establish Vietnam’s first full-scale facility capable of producing semiconductor chips domestically. The plant is expected to start trial production of 32 nm process chips by the end of 2027, with subsequent phases through 2028-2030 focused on optimizing production efficiency and laying a foundation for more advanced chip manufacturing technologies.

Party General Secretary Tô Lâm and Prime Minister Phạm Minh Chính attend the groundbreaking ceremony of Vietnam’s first semiconductor chip manufacturing plant. Photo: VGP.

Currently, Vietnam participates in most stages of the semiconductor value chain except chip fabrication, which is considered the most complex and critical step. The new factory is expected to close this gap and help complete a full domestic production process, from design and testing to manufacturing and packaging.

The facility will also serve as national infrastructure for research, design, testing, and production, supporting sectors such as aerospace, telecommunications, the Internet of Things (IoT), automotive manufacturing, medical equipment, and automation. Prime Minister Phạm Minh Chính highlighted that the project advances Vietnam’s semiconductor strategy and strengthens its role in the global technology value chain.

A rendered image of the Viettel semiconductor chip manufacturing plant. Photo: Viettel.

Viettel has prepared for this initiative by investing in human resource training, international cooperation, and technology transfer, accumulating experience in chip research, design, and applications across its technology systems. The long-term vision is for the Hoa Lac plant to expand further and support Vietnam’s gradual access to more advanced semiconductor technologies.