Vietnam targets first chip fab by 2026: PM

Vietnam aims to have its first semiconductor manufacturing plant by 2026, Prime Minister Pham Minh Chinh said, underscoring the country’s ambition to establish itself in the global chip supply chain.

PM Chinh made his statement during a meeting with leaders of the Global Semiconductor Alliance (SEMI) on Thursday.

Founded in 1970, SEMI represents more than 3,000 member companies/territories and 1.5 million professionals worldwide, with operations in North America, Europe, mainland China, Japan, South Korea, Taiwan, and Southeast Asia.

The organization is preparing for SEMI Expo Vietnam 2025, expected to draw over 5,000 delegates and 300 international enterprises, reflecting growing international interest in Vietnam’s semiconductor potential.

Chinh said Vietnam’s long-term vision is to become a high-income economy by 2045, driven by green growth, digital transformation, and innovation. “The semiconductor industry is a strategic pillar in this model,” he stressed.

Vietnam has issued a national semiconductor industry development strategy to 2030, with a vision to 2050, along with a national human resources development program for semiconductors and a list of 11 strategic technologies and products, including chips.

“Vietnam strives to have its first semiconductor production base in operation next year,” Chinh said, raising demand for international support in funding, manpower training, technology transfer, and administration.

At the meeting, SEMI leaders noted potential challenges to Vietnam’s tech-based growth path. They urged the government to accelerate institutional reforms, streamline administrative procedures through a one-stop mechanism, and promote the use of English in professional and regulatory settings.

Other priorities include securing reliable clean energy and building robust digital infrastructure to support chip manufacturing. Many also called on Vietnam to develop a full semiconductor value chain, spanning design, fabrication, and testing, rather than focusing mainly on assembly.

One key proposal was the creation of a Vietnam semiconductor association, which could link government, academia, and the private sector.

Welcoming the proposals, Chinh said the government would continue improving the business environment to turn “bottlenecks into competitive advantages.”

He reaffirmed plans to set up a national one-stop investment office to simplify licensing and administrative procedures for foreign investors.

The government chief also expected SEMI and global technology firms to help establish R&D centers, train engineers, and integrate Vietnamese companies into global supply chains.

Vietnam is now home to more than 50 chip design firms employing an estimated 7,000 engineers. Around 15 companies with some 6,600 engineers and over 10,000 technicians are engaged in chip packaging, testing, and production of semiconductor equipment and materials, according to the Ministry of Industry and Trade.

The country has issued a standardized curriculum for semiconductor education. A total of 166 universities now offer semiconductor-related programs, with over 6,300 undergraduate students majoring directly in semiconductors and more than 12,000 studying related fields.

As of August 2025, the country had around 170 FDI projects in the semiconductor and high-tech sectors, with total registered capital of nearly $11.6 billion.