Viettel, Vietnam’s state-owned telecom operator, has launched construction of the nation’s first semiconductor fabrication facility. Trial production is slated for late 2027, marking a key step in Vietnam’s strategy to establish a domestic semiconductor manufacturing ecosystem.
Goals and Capabilities
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 go into trial operation, fine-tune its processes and upgrade its equipment through to 2030, Viettel said in a statement.
“The new fabrication facility will enable Vietnam to engage in all six stages of the semiconductor value chain, including the technologically complex wafer fabrication process, which is not yet performed domestically,” the statement said.
The plant will focus on chip research, design, manufacturing, and testing, catering to sectors such as aerospace, telecommunications, medical equipment, and automotive manufacturing.
Viettel did not disclose the size of the investment for the project.
Growing Semiconductor Ambitions
Vietnam has emerged as a hub for semiconductor testing and packaging services, attracting global players like Intel, Samsung Electronics, Amkor Technology, Qualcomm, and Marvell Technology.
While China and Taiwan still dominate the back-end semiconductor manufacturing sector, including assembly, testing, and packaging (ATP), Vietnam has seen rapid growth.
The country is projected to raise its share of global ATP capacity to 8%-9% by 2032, climbing from 1% in 2022, according to a 2024 report by the U.S. Semiconductor Industry Association and Boston Consulting Group.
Plans for the facility also include future capacity for integrating emerging technologies, Viettel Chairman Tao Duc Thang said.
As part of its broader strategy, Vietnam’s government also plans to train 50,000 chip design engineers by 2030 and grow the semiconductor workforce to over 100,000 by 2040.
(With inputs from Reuters)
