Creating a market for Vietnamese semiconductor chips

To master every stage of semiconductor chip production, Viet Nam needs to develop its research capabilities, establish an end market, link research with practical needs and step up international cooperation. This is an important path towards mastering technology and enhancing the competitiveness of the domestic semiconductor industry.

A chip manufacturing plant in Viet Nam. (Photo: QUYNH NGA)
A chip manufacturing plant in Viet Nam. (Photo: QUYNH NGA)

Focusing on the development of specialised chips

According to the Ministry of Science and Technology, Viet Nam’s semiconductor industry has made notable progress. In 2025, the industry generated revenue of more than 21 billion USD and attracted over 14 billion USD in foreign investment through more than 240 projects. Around 60 IC design companies have been established, with a workforce of more than 7,000 semiconductor design engineers.

Viet Nam is gradually participating in important stages of the global value chain, from design, packaging and testing to research and development and the production of specialised chips. Among these, specialised chips play an important role in addressing the specific requirements of products and the industries in which they are used.

For example, an AI chip for an edge camera must be capable of processing images quickly, consuming little power, protecting data and operating reliably even when connectivity is intermittent. Chips controlling UAVs or robots must meet real-time performance and high reliability requirements. Security chips must establish a root of trust at the hardware level from the outset.

However, to master each stage, Viet Nam needs to address fundamental challenges relating to technology, markets, investment capital and the completion of the ecosystem. According to Nguyen Anh Tuan, Director of the National Centre for Semiconductor Chip Pilot Production Support, a major current challenge is the high cost of research and development. Meanwhile, the domestic production chain remains incomplete, covering design, fabrication, packaging, testing and quality certification.

For businesses with small orders, access to international packaging and testing services at reasonable costs remains limited. Even after producing a chip prototype, businesses still have to continue investing in software, circuit boards, reliability assessments and product integration, increasing the time and cost required to bring chips to market.

Notably, the gap between technology products and the market is creating a vicious circle. Businesses find it difficult to make bold investments without their first customers, while customers are not yet ready to place orders for products that have not been tested in real-world conditions. Without mechanisms to support initial testing, procurement and application, many products risk remaining at the research stage without being developed into commercial products.

To remove these barriers, experts believe that Viet Nam needs to build a comprehensive ecosystem for specialised chips, rather than providing support to individual businesses in isolation.

The Ministry of Science and Technology said it was finalising a submission to be presented to the Prime Minister for the issuance of a list of specialised chips in certain industries and sectors that the State will prioritise for procurement.

The draft list comprises 20 chip groups, developed on the basis of requirements put forward by ministries, sectors, businesses, research institutes, universities and experts.

Priority groups focus on AI and edge computing; telecommunications and next-generation wireless technologies; sensors, autonomous systems and the Internet of Things (IoT); energy and power electronics; and hardware security and encryption. The list will serve as a basis for guiding research, providing market signals and concentrating resources on products with development potential in Viet Nam.

In addition, the National Centre for Semiconductor Chip Pilot Production Support will provide shared infrastructure, including design tools, laboratories, pilot production support, testing and measurement services, and connections between chip design companies and manufacturers of end products. This will significantly reduce the costs, risks and time involved in bringing chips from laboratories to the market.

Stepping up international cooperation

To master semiconductor technology, Viet Nam needs to continue expanding international cooperation in a practical manner, making use of the capabilities of major global technology corporations to jointly research specialised chips and develop specific applications for products across different industries and sectors.

Currently, research and development (R&D) centres in Viet Nam and Qualcomm are expanding their cooperation to address challenges at the intersection of four fields: AI, semiconductors, software and systems engineering. In addition, establishing an end market for products designed in Viet Nam is considered a key solution.

Meanwhile, businesses are also making efforts to turn the goal of chip manufacturing into reality. A notable example is Geleximco Group, which is proceeding with investment procedures for a chip manufacturing plant in Hung Yen, with construction expected to begin in November 2026 and commercial products scheduled to reach the market in early 2028.

The company has committed to prioritising the testing and integration of control ICs, sensors and power chips designed by Vietnamese engineers into its electric vehicle models and industrial ecosystem. This will help address the fundamental challenge of securing the “first customer” for the domestic IC industry.

In practice, when policies pave the way and international cooperation is promoted, universities and research institutes will have greater opportunities to access advanced technologies, enhance their research capabilities and gradually master semiconductor technologies.

A clear example is the recent selection and signing of funding agreements by the National Foundation for Science and Technology Development for five Viet Nam–Japan joint semiconductor research projects in 2026.

As one of the institutions invited to participate in a collaborative research project, Associate Professor and Doctor Nguyen Thi Thuy of Ha Noi National University of Education said that, through high-level diplomatic connections facilitated by state management organisations, scientists at universities and research institutes had opportunities to gain access to and cooperate with global technology giants such as those in Japan.

Through this project, the research team at Ha Noi National University of Education has set the core objective of training and developing a highly skilled semiconductor workforce through the annual Viet Nam–Japan cooperation framework, reputable scientific forums and international conferences in the semiconductor field.

The next generation of young scientists will have the opportunity to work directly in modern laboratories in Japan, including those at Hiroshima University and the University of Tokyo, as well as major research institutes.

They will gain access to the most advanced industrial-standard IC design ecosystem, preparing them to shoulder responsibility for the future of the country’s semiconductor industry.

Back to top