I had the holes drilled for the buttons before applying formica. Once I applied the formica and let it cure, used a drill bit slowly! through the center of the hole, I think it was a 3/4" bit.
once that was done, I had a 1/2" formica trim bit for my router and trimmed out the rest of the button hole
The drill did chip slightly sometimes, when I went too fast. but the second step, once the 3/4" hole is done, took care of the chips... slowly is the key... and test!
Hope this helps