The project is carried out by Viettel under the assignment of the Ministry of National Defense, based on the Government’s resolution. This serves as a historic milestone, establishing Vietnam’s in-country chip manufacturing capability for the first time, laying the foundation for mastering core technologies and developing the national semiconductor ecosystem.
Semiconductors – The “heart” of modern technology
The presence of Party General Secretary To Lam, Prime Minister Pham Minh Chinh, and Minister of National Defense General Phan Van Giang at the groundbreaking ceremony affirmed the strategic priority of this project.
Semiconductor chips are the core of all electronics, from smartphones to advanced weaponry. Beyond powering IT infrastructure, these integrated circuits, comprised of billions of transistors, act as “brains” for data processing and control. In the digital economy, chips are vital for telecommunications, power grids, and Artificial Intelligence (AI). By 2025, AI accelerator chips had become standard in personal devices and data centers to enhance performance.
In defense, chips are essential for radars, cruise missiles, and UAVs. They secure sensitive data and enable “smart weapons” and surveillance systems. Military-grade hardware, such as 7nm-5nm chips, must endure harsh environments to support cyber warfare and real-time processing. Consequently, the global market is projected to reach USD 697 billion in 2025.
Domestic chip manufacturing is now a strategic necessity for technological autonomy and supply chain resilience. However, production is immensely complex, involving 1,000 steps over three months where minor errors can ruin entire lines. While giants like TSMC, Samsung, and Intel dominate advanced 7nm-3nm nodes, the industry still faces a critical shortage of highly skilled engineers.
Realizing aspiration to master core technology
Viettel has broken ground on Vietnam’s first high-tech semiconductor plant at Hoa Lac High-Tech Park, marking a milestone in national tech autonomy. While Vietnam currently participates in five of the six chip production stages, this 27-hectare facility will provide the final critical link: domestic wafer fabrication.
Speaking at the ceremony, Prime Minister Pham Minh Chinh emphasized the plant’s role in realizing the national semiconductor strategy and deepening Vietnam’s integration into global value chains through innovation. The facility will serve as national infrastructure for industries including aerospace, telecommunications, and automotive, while accelerating product testing cycles for local institutions.
Lieutenant General Tao Duc Thang, Chairman and General Director of Viettel, affirmed the group aims to complete construction and begin trial production by late 2027. The 2028–2030 period will focus on process optimization and researching advanced technologies. Beyond manufacturing, the plant will function as a practical training hub, supporting the national goal of 50,000 chip engineers by 2030 and 100,000 by 2040.
This project continues Viettel’s core strategy of mastering advanced technology through international cooperation and workforce preparation. Following a 2026–2030 road-map, the facility is designed for future scalability, ensuring Vietnam’s long-term access to frontier semiconductor solutions.
Translated by Minh Anh
