Vietnam Aims to Manufacture Semiconductors Locally

Vietnam's semiconductor industry has made significant progress in recent years, with the country generating over $21 billion in revenue in 2025 and attracting $14 billion in foreign direct investment across more than 240 projects. However, despite this growth, the industry still faces a critical bottleneck in translating chip designs into manufactured products.

The country's first fully funded start-up, Vietnam Semiconductor Advanced Packaging (VSAP) LAB, has taken steps to address this challenge. The company has mobilized $80 million to establish a facility in Đà Nẵng, Vietnam, which is expected to begin operations in the fourth quarter of 2026.

VSAP LAB's ambitious project aims to master advanced chip packaging technologies and design specialized chips for smart wearables and unmanned aerial vehicles (UAVs). This is a departure from the more common approach of contract manufacturing or producing equipment casings, which is relatively straightforward.

However, the project faces significant challenges, including high costs and institutional hurdles. Developing software solutions or 3D-printing UAV casings is relatively easy, but creating the 'brain' of these systems requires a much deeper level of expertise and investment.

The success of VSAP LAB's project will be closely watched by industry experts and policymakers, who are eager to see if Vietnam can overcome the challenges and establish itself as a major player in the global semiconductor industry.