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Vietnam Takes Another Step Up the Semiconductor Value Chain
FPT Corporation has commenced trial operations at Vietnam’s first domestically owned semiconductor chip testing and packaging plant in Bac Ninh, marking an important step in developing local capabilities in advanced manufacturing.
Located in Yen Phong II-C Industrial Park, the facility features:
- 6 production lines, with a designed capacity of 300 million chips annually.
- 1,600 sqm of facilities, equipped with automated testing systems and international quality standards.
- Initial commercial orders expected from a South Korean partner, providing an entry point into the global semiconductor supply chain
Why does this matter for Vietnam?
For years, Vietnam has successfully attracted major global manufacturers. However, limited domestic capabilities in higher value-added industries have often required foreign investors to bring along their established international suppliers, leaving Vietnamese companies with relatively limited participation in more advanced stages of production.
FPT’s investment represents a practical step toward changing this. By developing local capabilities in semiconductor testing, packaging, and engineering, Vietnam can gradually build a stronger domestic supplier ecosystem and capture more value from its manufacturing activities.
Over time, this should also strengthen Vietnam’s competitiveness in attracting FDI, as global manufacturers increasingly value access to qualified local suppliers and supporting industries.
Source: FPT
