Vietnam focuses on chip development for national security, digital transformation

Vietnam is fast-tracking its domestic semiconductor industry, aiming to produce key chips for civilian, defense and security use by 2027, government and industry experts have said.

Speaking at a scientific workshop in Hanoi last week, Tran Kim Chung, Chairman of CT Group, said that semiconductors are no longer just a trade commodity but a strategic asset essential to national security and technological sovereignty.

He said that it takes more than two years on average to develop a standard chip.

Chung urged government agencies to act decisively to ensure Vietnam meets its 2027 target, keeping pace with rapid digital transformation and global competition.

Regarding chip development, the specialist warned about malicious codes embedded in the hardware.

These pose a growing global security threat, capable of bypassing conventional defenses, Chung said.

Such vulnerabilities could cause national data leaks or disrupt emergency responses, he added.

“Vietnam must look beyond short-term needs and take ownership of core semiconductor technologies, from design to commercialization,” said Chung.

Creating “Made in Vietnam” chips will help Vietnam become Southeast Asia’s new semiconductor hub, and serve both domestic and global markets, he added.

Thai Truyen Dai Chan, member of tech developer CT Group's Science Council, said that control over semiconductors is no longer a trade issue but a geopolitical contest. 

Without mastering integrated circuits, there are high risks for every nation in supply chain disruptions, economic instability, and weakened defense systems, he said.

Imported chips, he cautioned, may even contain backdoors threatening sovereignty.

Vietnam should target practical segments aligned with domestic needs as it is no longer suitable to compete head-on in ultra-advanced semiconductors requiring decades of know-how and billions of dollars in investment, according to the experts at the workshop.

Le Hai Trieu, Director of the Electronics Engineering Department at the Institute of Science and Technology under the Ministry of Public Security, said that Vietnam has designed quality circuits but still relies on foreign production, which carries cost and security risks.

Given domestic demand for ID card and passport chips, which rely on technologies holding 95% of the global market share, local firms should prioritize these products.

He revealed the ministry is drafting a 2025 proposal to master semiconductor technologies for defense and security.

At the early-August meeting of the National Steering Committee on the Development of the Semiconductor Industry, Prime Minister Pham Minh Chinh said that Vietnam aims to master chip design and manufacturing by 2027, guided by a clear roadmap, coordinated efforts, and strong government leadership.