Vietnam's Chipmaking Milestone: 28nm Process Enters Mass Production
On July 28, 2026, FPT Semiconductor, a leading Vietnamese semiconductor company, officially announced in Hanoi that its self-developed 28nm process node has entered mass production. The first batch of chips for IoT and consumer electronics has been delivered to customers for testing. This breakthrough makes Vietnam the third Southeast Asian country, after Singapore and Malaysia, capable of mass producing 28nm and above advanced processes.
Technical Breakthrough and Industry Background
FPT Semiconductor's 28nm chips leverage mature process technology from Taiwan, China, combined with Vietnam's local packaging and testing capabilities. CEO Nguyen Van Anh stated: "We focus on analog and mixed-signal chips. The 28nm process covers 80% of current IoT, power management, and sensor needs. This is a key step for Vietnam's semiconductor self-reliance." The production line, located in the Ho Chi Minh City Hi-Tech Park, initially has a monthly capacity of 5,000 wafers, expected to reach 20,000 by end of 2027.
The Vietnamese government has strongly promoted semiconductor development in recent years. The 2025 National Semiconductor Development Strategy aims to train 50,000 engineers and build three advanced packaging and testing plants by 2030. FPT's mass production success is an early outcome of this strategy.
Market Impact and Industry Interpretation
Senior semiconductor analyst Tran Minh Quang noted: "Vietnam already has a foundation in packaging and testing, but front-end wafer manufacturing has been a weakness. Mass production of 28nm, while not the most cutting-edge, is significant for Vietnam's local supply chain—reducing dependence on external foundries like TSMC and UMC, especially amid geopolitical tensions, enhancing supply chain resilience." Vietnam currently imports about $15 billion worth of chips annually, with mature processes (28nm and above) accounting for over 40%. Local production could replace roughly 20% of imports within three years.
This progress has attracted international attention. South Korea's SK Hynix is in talks with FPT to build a Hybrid Bonding packaging line for AI accelerator chips in Vietnam; US-based Qualcomm has also expressed plans to expand its chip design center in Vietnam. Analysts believe FPT's production capability will become a "calling card" for attracting more semiconductor investment to Vietnam.
Challenges and Future Outlook
Despite the breakthrough, Vietnam's chip industry faces challenges: advanced processes beyond 28nm are dominated by TSMC, Samsung, etc., making near-term catch-up difficult; lack of core equipment like high-end lithography machines—the current line relies mainly on second-hand ASML equipment; and a significant talent gap—FPT's engineering team is only 800 strong, while the industry-wide shortfall reaches 20,000.
FPT Semiconductor plans to start 14nm process R&D in 2028, while discussing new-generation lithography machine procurement with ASML. The Vietnamese government also announced a $1 billion semiconductor fund for equipment subsidies and talent training. As global semiconductor supply chains diversify, Vietnam is shifting from an "assembly base" to a "manufacturing + design" dual-drive model.
In summary, the 28nm chip mass production marks a key milestone for Vietnam's semiconductor self-reliance and adds a new supply source to the global chip market. For investors tracking chip trends, the rise of local Vietnamese companies warrants continued attention.