- Joined
- Aug 19, 2017
- Messages
- 2,885 (1.04/day)
Vietnam's government has approved its first wafer fab facility, with an investment of 12.8 trillion VND (approximately $500 million). The first phase of the facility, scheduled for completion by 2030, is designed to manufacture specialized chips for defense, AI, and other high-tech applications. The project will receive government backing through direct funding—covering up to 30% of the total investment, capped at 10 trillion VND—and tax incentives. A special steering committee headed by the Prime Minister has been tasked with overseeing the project's execution and resource allocation. The new fab is a critical component of Vietnam's long-term semiconductor strategy, a phased approach toward building a domestic ecosystem for chip design, manufacturing, and testing. The current investment is modest compared to the typical costs of advanced wafer fabs, which can reach up to $50 billion.
Nonetheless, the project is a foundational, one-step-at-the-time move intended to spur further investments and technology transfer. Vietnamese officials have reportedly engaged in discussions with major international chip manufacturers—including US, South Korea, and Taiwan entities, such as GlobalFoundries and Powerchip Semiconductor Manufacturing Corp—to explore potential collaborative opportunities. Vietnam already hosts 174 semiconductor-related projects, predominantly focused on chip packaging and testing, in which global companies like Intel and Amkor have established significant operations. The second phase, from 2030-2040, envisions Vietnam emerging as a worldwide center for electronics and semiconductors. By expanding to at least 200 design companies, establishing two semiconductor chip manufacturing plants, and creating 15 packaging and testing facilities, the country intends to gradually develop independent semiconductor product design and production capabilities.
However, challenges persist, including infrastructural limitations, a heavy reliance on imported high-end technology, and stiff competition from regional players in Southeast Asia. While the current wafer fab project may not immediately catapult Vietnam into a leader in semiconductor manufacturing, it is a calculated initial step towards building a comprehensive, long-term semiconductor ecosystem that could eventually support more advanced production capabilities. The world's most important industry is attracting strategic investments from governments all around the world, so we have to wait and see what materializes into an actual usable product.
View at TechPowerUp Main Site | Source
Nonetheless, the project is a foundational, one-step-at-the-time move intended to spur further investments and technology transfer. Vietnamese officials have reportedly engaged in discussions with major international chip manufacturers—including US, South Korea, and Taiwan entities, such as GlobalFoundries and Powerchip Semiconductor Manufacturing Corp—to explore potential collaborative opportunities. Vietnam already hosts 174 semiconductor-related projects, predominantly focused on chip packaging and testing, in which global companies like Intel and Amkor have established significant operations. The second phase, from 2030-2040, envisions Vietnam emerging as a worldwide center for electronics and semiconductors. By expanding to at least 200 design companies, establishing two semiconductor chip manufacturing plants, and creating 15 packaging and testing facilities, the country intends to gradually develop independent semiconductor product design and production capabilities.
However, challenges persist, including infrastructural limitations, a heavy reliance on imported high-end technology, and stiff competition from regional players in Southeast Asia. While the current wafer fab project may not immediately catapult Vietnam into a leader in semiconductor manufacturing, it is a calculated initial step towards building a comprehensive, long-term semiconductor ecosystem that could eventually support more advanced production capabilities. The world's most important industry is attracting strategic investments from governments all around the world, so we have to wait and see what materializes into an actual usable product.
View at TechPowerUp Main Site | Source
