Dutch chipmaking firm VDL to build semiconductor parts factory in Vietnam  

  • Vietnam is Intel’s largest chip packaging and testing plant and is attracting interest from other chipmakers as they seek to diversify their Asian operations.
  • Dutch high tech firm VDL will build a new factory to make semiconductor manufacturing components in Vietnam.

Dutch high tech firm VDL will build a new factory to make semiconductor manufacturing components in Vietnam, it said on Wednesday, as the Asian country grows in importance as an assembly and packaging hub in the chipmaking industry.

Why in Vietnam

Against the background of the degradation of the state of interaction between the United States and China, which has already manifested itself in the form of certain restrictions, including in the technology sector, many companies are seeking to diversify their production activities.

But at the same time, these firms need to maintain a presence in Asia. In the context of this reality, Vietnam has prospects for development as a major manufacturing center. It is worth noting that India also claims this status.

Besides, Vietnam is home to Intel’s largest chip packaging and testing plant and is attracting interest from other chipmakers.

Also read: Top tech news stories today: March 20, 2024

Scale

A spokesperson for the company said he could not specify the size of the investment in northeast Vietnam, but that it would involve “millions” of euros and the site will employ 60 workers.

Eindhoven, Netherlands-based VDL is a key supplier to Europe’s largest tech company ASML, making its wafer handling systems, though the Vietnam factory will not supply ASML.

The investment decision follows several visits by Dutch companies to the region, including a scouting mission by ASML suppliers a year ago, and a visit by Prime Minister Mark Rutte in November that led to an investment by Dutch chip packaging equipment maker BE Semiconductor Industries.

Representatives of the Netherlands have made several visits to the specified Asian country. Last year, ASML suppliers visited Vietnam as part of a scouting mission.

Dutch Prime Minister Mark Rutte also paid a visit to the Asian country in 2023. After that, the Dutch manufacturer of chip packaging equipment BE Semiconductor Industries (BESI) decided to invest in Vietnam.

Jennifer-Yu

Jennifer Yu

Jennifer Yu is an intern reporter at BTW Media covering artificial intelligence and internet governance. She graduated from The University of Hong Kong with a Master’s degree in Journalism. Send tips to j.yu@btw.media.

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