Viettel, a telecommunications firm majority-owned by the Vietnamese military, commenced construction of the nation's first semiconductor manufacturing plant on Friday, with trial production anticipated to begin by the end of 2027, marking a significant step in Vietnam's plan to build a domestic chip-making ecosystem.

In a statement, Viettel announced that the 27-hectare facility, located in the Hoa Lac High-Tech Park on the outskirts of Hanoi, will complete its construction and technology transfer phase by the end of next year, after which it will enter a trial operation stage; the plant will continue to optimize production processes and upgrade related equipment until 2030.

The statement noted, "This new manufacturing facility will enable Vietnam to cover all six stages of the semiconductor industry chain, including the highly technologically complex wafer fabrication stage—a segment that currently lacks domestic production capabilities within Vietnam."

The factory will concentrate on four core areas: the research and development, design, manufacturing, and testing of chips, catering to various sectors including aerospace, telecommunications, medical equipment, and automotive manufacturing.

Viettel did not disclose the specific investment amount for the project.

Vietnam has progressively evolved into a hub for semiconductor assembly, testing, and packaging services, attracting leading global industry players such as Intel, Samsung Electronics, Amkor Technology, Qualcomm, and Marvell Technology.

Although mainland China and Taiwan currently maintain dominance in the back-end semiconductor manufacturing segments of packaging, testing, and assembly, Vietnam's momentum in this field is exceptionally rapid.

According to a 2024 joint report by the U.S. Semiconductor Industry Association and Boston Consulting Group, Vietnam's share of the global semiconductor assembly, test, and packaging capacity is projected to increase from 1% in 2022 to between 8% and 9% by 2032.

Tao Duc Thang, Chairman of Viettel, stated that the plant's plan also includes provisions for integrating capacity related to various emerging technologies in the future.

As part of the country's broader semiconductor industry strategy, the Vietnamese government has also set a talent development goal: it plans to train 50,000 chip design engineers by 2030 and expand the workforce in the domestic semiconductor industry to over 100,000 people by 2040.