Vietnamese-designed Internet of Things (IoT) chip was officially launched by CT Group in Ho Chi Minh City on June 29, marking a notable development in the country’s ambition to build domestic capacity in semiconductor design and production.

Developed by a team of Vietnamese engineers, the chip uses CMOS and III/V semiconductor technologies and is intended for applications in sectors such as UAVs, smart devices and telecommunications. It was introduced at a ceremony marking the group’s 33rd anniversary.

The CT Group said it was establishing chip design centres focused on AI, IoT and specialised systems-on-chip (SoC), and was working on developing its own intellectual property (IP) cores, including ADC/DAC modules, signal processors and neural processing units. The company aims to reduce reliance on imported technologies and move toward full design autonomy.

Though the group currently operates under a fabless model — designing chips locally while outsourcing manufacturing — it plans to eventually cover the entire value chain, including photolithography, assembly, packaging and testing. A proposal is being developed for public-private collaboration on photolithography infrastructure.

In parallel, CT Semiconductor, a subsidiary of the group, is building three chip packaging and testing plants — two in southern Vietnam and one in the north — alongside two R&D centres in HCM City and Hanoi.

The chip is expected to serve both internal demand from the CT Group’s technology ecosystem, including AI cameras and smart energy modules, as well as external markets, particularly in the defence and public security sectors.

Speaking at the event, CT Group Chairman Tran Kim Chung said the company was collaborating with domestic universities and overseas experts to develop the skilled workforce needed to support long-term growth in the sector.

The group has also proposed April 30 be designated as 'Vietnam Semiconductor Day' to highlight the country’s growing focus on high-tech development as part of broader industrial modernisation efforts.

Vietnam has identified semiconductors as a strategic industry, and recent Government plans have included targets for increasing domestic design and manufacturing capacity, supported by education and international cooperation.