Viettel begins construction of Vietnam's first chip plant, trial run targeted by end‑2027

HANOI, Jan 16 (Reuters) - 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, 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% 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.

(Reporting by ‌Phuong Nguyen; Editing by David Stanway)