Vietnam has announced plans to invest approximately VNĐ12.8 trillion (US$501.2 million) in the development of a semiconductor chip manufacturing plant. The facility is expected to support research, design, production, packaging, and testing as part of the country’s broader semiconductor industry strategy.
The initiative aligns with Vietnam’s national semiconductor development strategy, which extends until 2030 with a vision toward 2050. According to Nguyễn Khắc Lịch, Director of the Department of Information and Communications Technology under the Ministry of Information and Communications, this is Vietnam’s first long-term strategy aimed at strengthening its role in the global semiconductor industry.
Strategic Goals and Industry Development
The Vietnamese government aims to enhance domestic capabilities in semiconductor technology to reduce reliance on external suppliers and contribute to global supply chains. The development of a high-tech chip manufacturing plant is part of the strategy to address domestic demand while ensuring technological advancements in electronics and semiconductor research.
A recent National Assembly resolution has introduced policies to facilitate growth in science, technology, innovation, and digital transformation. As part of this initiative, the state will provide financial support for the construction of the first semiconductor plant, which will focus on both research and small-scale production.
Under this policy, enterprises investing in semiconductor production could receive up to 30% of total project investment from the central budget, with support capped at VNĐ10 trillion (US$391.6 million). Additional tax incentives and deductions for research and development (R&D) are also included.
Industry Participation and Future Prospects
Several Vietnamese companies, including FPT and Viettel, have entered the semiconductor design and production sector. Viettel recently announced the successful design of the 5G DFE chip, described as the most complex chip developed in Southeast Asia, with the ability to process 1,000 billion calculations per second.
According to Nguyễn Trung Kiên, Deputy Head of Viettel’s Semiconductor Technology Department, semiconductor development requires specialized knowledge in research, electronic system design, and high-tech manufacturing. Major General Nguyễn Đình Chiến, Deputy General Director of Viettel, emphasized that the industry’s growth requires a long-term approach with continued investment in both research and commercial applications.
Lê Quang Đạm, CEO of Marvell Technology Vietnam, highlighted Vietnam’s potential in the semiconductor sector, citing global geopolitical shifts as a factor in creating new opportunities. He stressed the need for collaboration among government agencies, private sector firms, and industry professionals to maximize Vietnam’s role in the global semiconductor market.
The government’s semiconductor strategy is expected to enhance Vietnam’s technological capabilities and position the country as a key player in the industry while supporting national security and economic development objectives.
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