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Vietnam’s groundbreaking of its first domestically manufactured semiconductor fabrication plant marks a historic step toward building self-reliant core technology at the foundational level. After years of expanding investment in core technologies—especially semiconductors, a backbone of the digital economy—Vietnam is moving from participating in parts of the global value chain toward mastering more of the technology itself.
The Hoa Lạc (Hoa Lac) plant covers 27 hectares and is designed to function as national infrastructure supporting the full semiconductor cycle, from research and development, design, and testing to production. The goal is to address the needs of several key industries.
Semiconductor manufacturing is highly competitive and concentrated in only a limited number of countries. A finished chip typically goes through six main stages: product definition and design, fabrication, packaging, and testing. Vietnam has participated in five of these six stages to date, and the Hoa Lạc plant is intended to complete the domestic end-to-end process.
Chip production involves hundreds of ultra-thin material layers. A silicon wafer must undergo roughly 1,000 consecutive technology steps over about three months, with the wafer traveling tens of kilometers within the facility. Such complexity requires near-perfect operating standards, including Class-1 cleanrooms, power consumption comparable to tens of thousands of households, and ultra-pure water quality well above medical standards. Vibration control must also be extremely tight, as even imperceptible oscillations can cause misalignment, and a single error in thousands of steps can render the product unusable.
In its initial phase, the plant will adopt a 32-nanometer process. The selection is aligned with practical applications across telecommunications, the Internet of Things (IoT), electric vehicles, medical devices, and automation.
Previously, chip design firms typically had to send products overseas for manufacturing and testing, which was costly and complex. Domestic production is expected to enable faster realization of designs beyond initial schematics.
The milestone is also positioned as a key lever for Vietnam’s goal of fostering 100 chip-design enterprises by 2030 and building high-quality human capital. Vietnam has attracted $14.2 billion of foreign direct investment (FDI) into the semiconductor sector.
On March 10, 2026, the National Steering Committee on Semiconductor Industry Development held its first meeting of the year. Vietnam now participates in all stages of the global semiconductor value chain, with more than 50 chip-design firms and around 7,000 engineers in the field.
Total FDI in the semiconductor sector has reached over $14.2 billion across 241 projects. On the education side, Vietnam has more than 240 universities delivering engineering programs, annually producing about 134,000 graduates, including roughly 6,000 microelectronics engineers.
As the global semiconductor industry continues to grow and restructure supply chains, Vietnam’s role is increasingly recognized. Demand is being supported by developments in artificial intelligence, cloud computing, IoT, and big data. At the same time, diversifying global supply chains is creating opportunities for developing economies, with Southeast Asia—and Vietnam in particular—emerging as a growing link in packaging and testing.
Many global technology groups have invested in and expanded operations in Vietnam, focusing on assembly, packaging, and testing. Domestic firms are also strengthening capabilities across the value chain, from design to production and related services.
Three strategic pillars have been identified to develop Vietnam’s semiconductor industry: technology, financial resources, and a high-quality workforce. In an interview with VNEconomy, Professor Augustine Hà Tôn Vinh—Chairman and CEO of Stellar Management and head of the Advanced Education and Training Program for enterprise leadership at UC Meramar University in Vietnam—outlined the pillars as technology, funding, and high-quality human resources.
He emphasized that financing requires a long-term allocation strategy prioritizing strategic technology sectors and workforce development. Investment in technology should be paired with knowledge transfer and hands-on operation training, noting that purchasing equipment alone is not sufficient without training and technical support to ensure efficient operation.
Human capital was described as the biggest challenge. Semiconductors require prolonged and rigorous training. One approach involves sending personnel abroad to learn directly on modern production lines and returning to contribute domestically, while also inviting international experts and Vietnamese engineers living abroad to teach. Short-term, practical training programs should be expanded with real-world experience rather than purely theoretical knowledge. Professor Augustine Hà Tôn Vinh said the overall direction for high-tech development is broadly sound, but substantial results require coordinated action among the state, enterprises, and the education system.
Overall, Vietnam’s semiconductor sector is at a pivotal inflection point, supported by government action, investment, and a growing domestic talent pool.
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