Vietnam is set to establish its first locally-owned semiconductor manufacturing plant, which will focus on chip production, packaging, testing, and processing.

The facility, expected to be operational by February 2026, marks a significant milestone in Vietnam’s semiconductor industry as it moves towards self-sufficiency in high-tech manufacturing.

Vietnam’s semiconductor industry: from foreign dependence to local leadership

Currently, all semiconductor factories in Vietnam are foreign-owned (FDI), limiting the role of Vietnamese companies and engineers in the industry beyond basic assembly processes.

To address this, the government has approved a groundbreaking policy framework to support the establishment of a domestic semiconductor industry.

In 2024, Vietnam’s National Assembly passed a special resolution providing financial incentives for local enterprises to build the country’s first semiconductor plant. Under this initiative, companies selected for small-scale, high-tech chip fabrication will receive:

30% of total project investment funded by the government, capped at $400 million (10 trillion VND) if operational before December 31, 2030.

Corporate income tax incentives, allowing companies to allocate up to 20% of taxable income annually to their science and technology development fund.

Land-use benefits, including land allocation without auction or competitive bidding for approved semiconductor projects.

The Vietnamese government will handpick one domestic enterprise to lead the initiative, with direct approval from the Prime Minister regarding funding levels and implementation.

CT Semiconductor leads the charge in local chip manufacturing

Despite government incentives, Vietnam’s first domestic semiconductor plant is set to launch independently of state funding.

During a high-tech leadership exchange event in Ho Chi Minh City on March 13, 2025, Wan Azmi, COO of CT Semiconductor, announced plans for Vietnam’s first locally-invested, locally-operated chip manufacturing facility.

The plant will be built at the Saigon Hi-Tech Park (SHTP) in Ho Chi Minh City, covering 20,000 square meters across four floors.

It will specialize in Outsourced Semiconductor Assembly and Testing (OSAT) services, focusing on chip packaging, testing, and fabrication.

According to Wan Azmi, semiconductor investments are capital-intensive. CT Semiconductor has already spent $95 million (2.4 trillion VND) on operations and an additional $87 million (2.2 trillion VND) on equipment procurement, excluding construction costs.

Developing Vietnam’s semiconductor workforce

To build a skilled workforce, CT Semiconductor has partnered with Arizona State University and Vietnamese universities to establish semiconductor training programs. The company plans to offer:

Hands-on training with advanced semiconductor production lines.

Opportunities for Vietnamese engineers to collaborate with global experts.

Internship and exchange programs to develop industry-ready talent.

According to Tran Kim Chung, Chairman of CT Group, the company aims to become a fully Vietnamese-owned semiconductor powerhouse, breaking away from past models where FDI companies dominated Vietnam’s chip sector.

Meanwhile, Vinh Nguyen, former Vice President of ECI Technology, emphasized that Vietnam’s semiconductor independence will boost economic growth, job creation, national security, and global competitiveness.

Le My