Vietnam’s first chip plant unlikely to meet 2027 target, sources say no deal yet with ASML
Authorities have estimated the cost of the plant at about US$1.3 billion (S$1.66 billion).
Vietnam's first semiconductor plant faces hurdles in reaching a 2027 production target, according to sources. The plant, located near Hanoi, has yet to secure a deal with chip-making equipment supplier ASML, with negotiations ongoing for months. A site visit revealed wild vegetation covering the location, and satellite images confirm no buildings have been constructed.
Developers Viettel, a military-run telecoms and defense group, admit the project is "progressing in line with the established plan and schedule" but acknowledge delays due to their limited experience in chip factory construction and administrative obstacles in obtaining government funding. The government-mandated project aims to help Vietnam become a high-income economy by 2045, with a projected cost of around US$1.3 billion.
ASML, which holds a monopoly on advanced equipment, stated in October that it may not fully meet demand for its most sophisticated machines due to the AI boom. Viettel initially planned to produce semiconductors using 32-nanometre technology but has since removed this reference from its website. Despite Vietnam's strive to become a hub for semiconductor assembly, testing, and packaging, foreign investors have yet to invest in a chip manufacturing facility.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
