Vietnamese telecom Viettel begins construction of country's first chip plant

Vietnam's military-run telecom company Viettel on Friday 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 create 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 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.

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 percent by 2032, climbing from 1 percent 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.