What's Happening?
Viettel, a military-run telecom firm in Vietnam, has started constructing the country's first semiconductor fabrication plant at Hoa Lac Hi-Tech Park near Hanoi. The plant aims to begin trial production by 2027 and is part of Vietnam's strategy to develop
a comprehensive semiconductor manufacturing ecosystem. This initiative is expected to enhance Vietnam's capabilities in the semiconductor value chain, traditionally dominated by China and Taiwan. The plant will support industries such as aerospace, telecommunications, and automotive manufacturing. Vietnam plans to expand its workforce significantly, aiming for 50,000 chip design engineers by 2030 and over 100,000 by 2040.
Why It's Important?
Vietnam's entry into semiconductor manufacturing marks a significant shift in the global tech landscape, potentially reducing reliance on traditional semiconductor powerhouses like China and Taiwan. This development could attract foreign investment and position Vietnam as a key player in the global semiconductor market. The expansion of Vietnam's semiconductor capabilities aligns with global trends towards diversifying supply chains and reducing geopolitical risks associated with concentrated production hubs. The move also supports Vietnam's broader economic goals of technological advancement and increased competitiveness in high-tech industries.
