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Vietnam breaks ground on first chip manufacturing plant

Updated: 21:02, 17/01/2026

Viettel has broken ground on Vietnam’s first semiconductor fabrication plant at Hoa Lac Hi-Tech Park in Hanoi, and plans to start trial production of 32-nanometer chips next year.

Tao Duc Thang, chairman and chief executive officer of Viettel, said at the groundbreaking ceremony for the 27-hectare facility that, between 2028 and 2030, the company plans to refine and optimize manufacturing processes and improve production-line efficiency in line with industry standards, creating a foundation for research into more advanced chipmaking technologies.

A rendering of Viettel’s semiconductor manufacturing plant.

The project would be a major milestone as Vietnam’s first indigenous semiconductor manufacturing capability and for laying the groundwork to master core technologies and the growth of the digital economy, he said.

Once operational, the plant is expected to supply chips to key industries such as aerospace, telecommunications, the Internet of Things, automobile manufacturing, medical devices, and automation.

Prime Minister Pham Minh Chinh said the project demonstrates Vietnam’s ability to gradually master sophisticated technologies.

"This helps complete a critical link in the global semiconductor value chain, marking a shift from participation to ownership and from assembly to innovation, and strengthening Vietnam’s capabilities and position in the digital era."

The plant is also expected to serve as a hands-on training center, linking education with real-world production. Vietnam seeks to train 50,000 chip design engineers by 2030 under its semiconductor workforce development program, and projects its total chip workforce to exceed 100,000 by 2040 by then.

A semiconductor chip typically moves through product definition, architecture and IC design, manufacturing, assembly, packaging and testing, and system integration and validation.

It has been through five of six stages, but manufacturing, considered the most complex and critical step, has so far never been done in the country.

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