The NNA Asia (Kyodo News Group): Building an Ecosystem from Semiconductor Materials - The Challenge of Vietnam Wafer (Part 1)
- VNW Contact
- Sep 30
- 3 min read
Updated: Oct 1
Building an Ecosystem from Semiconductor Materials
The Challenge of Vietnam Wafer (Part 1)
Vietnam Wafer, a local startup headquartered in Ho Chi Minh City, is taking on the challenge of building the foundations of Vietnam’s semiconductor industry. The company is working to refine the country’s abundant quartz resources into high-purity material, with the goal of ensuring a stable supply of silicon wafers, the substrate on which semiconductor chips are made. Established in 2024, the firm aims to start operations at a high-purity quartz (HPQ) plant in Quang Tri Province in 2026, while simultaneously building an R&D center to accumulate technology and human capital. This is seen as its first step toward fostering an entire industrial ecosystem.
Semiconductor chips are manufactured from silicon wafers sliced from ingots of metallic silicon. That metallic silicon is extracted by purifying quartz. In wafer production - the upstream stage of chipmaking - Japanese companies Shin-Etsu Chemical and SUMCO dominate globally, while Vietnamese firms are almost absent.
CEO Chau Hoang Long saw opportunity in the upstream stages. In 2022, he began developing a plan to produce HPQ and established Vietnam Wafer in 2024. “The stages where circuits are formed on wafers require massive amounts of capital,” Long told NNA. “That’s precisely why startups like ours must enter the value chain further upstream, starting with high-purity quartz.”
Plant Scheduled for 2026
Long’s first move was to search for quartz sand deposits containing large, high-purity crystals suitable for semiconductors. “Quartz for semiconductor use cannot be discovered without geological knowledge,” he explained. “You have to study the ages and formation of rock layers and walk the sites to uncover it. That’s where we began.”
The company located suitable deposits in Quang Tri Province and advanced to constructing an HPQ purification plant scheduled to begin operations in 2026.
At the plant, impurities such as iron and aluminum will be thoroughly removed from quartz sand, raising it to a quality fit for semiconductor use. The first phase of the project represents an investment of about USD 3 million (approx. JPY 450 million), with an annual production capacity of 1,500 tons.
Processes downstream of purification - such as casting quartz into ingots and slicing wafers - will be contracted out, but Vietnam Wafer will manage specifications and quality control itself.
“Even if production is outsourced, we must hold the reins on quality assurance,” Long emphasized. “If we hand that over, we will never gain customer trust.”
He added: “Without securing upstream supply, costs cannot be controlled. By obtaining and refining quartz ourselves, we can deliver stability and competitiveness to downstream processes.”
Vietnam Wafer’s challenge is being bolstered by national policy. The Vietnamese government has identified semiconductors as a priority sector and is supporting the HPQ project through tax incentives, subsidies for R&D, and workforce development. By aligning closely with the national strategy, Vietnam Wafer aims to strengthen the stability of its business foundation.
About Vietnam Wafer:
The idea originated in 2022, when founding members conceived of turning Vietnam’s abundant quartz resources into semiconductor-grade materials. The company was incorporated in 2024.
CEO Chau Hoang Long previously held executive positions at major Vietnamese investment firms. His professional expertise lies in strategic planning, financial management, and mergers and acquisitions (M&A).
Comments