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High Tech Firm VDL to Build Plant in Vietnam

Dutch high-tech company VDL on Wednesday, March 20, announced its intention to build a new factory for the production of components for making chips in Vietnam.

High Tech Firm VDL to Build Plant in Vietnam

Currently, there is a process of strengthening the status of the mentioned country as an assembly and packaging center in the microcircuits manufacturing industry. An Intel chip packaging and testing plant is already operating in Vietnam. Currently, this country is the focus of many companies specializing in making microcircuits. The corresponding trend is largely due to the current state of affairs in the plane of geopolitical relations. 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, it is extremely important for these firms 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. New Delhi is taking active measures of state backing the development of the domestic manufacturing industry.

VDL, which also has plants in China and Singapore, said that the decision to build the factory in Vietnam was made outside the context of the current geopolitical situation. At the same time, many of the company’s clients are striving to diversify their production base. In this case, it implies the deployment of activities outside of China. This is a natural aspiration against the background of the fact that the tension in relations between Washington and Beijing does not show any signs of stabilization of the situation in the foreseeable future.

VDL stated that its customers around the world are demanding an even broader global coverage with local production for the local market. A spokesperson for the company said he could not specify the amount of investment in the construction of a plant in northeastern Vietnam. At the same time, it was noted that in this case, financing for several million euros is needed. A spokesperson for the company also stated that 60 people will work at the construction site.

VDL is based in Eindhoven. This company is the main supplier of another Dutch firm ASML, which specializes in the development and production of photolithography systems, which are necessary, among other things, for the semiconductor industry. It is known that the operation of the new plant in Vietnam will not be associated with the mentioned partner VDL.

It is worth noting that 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. This company intends to build a plant in an Asian country within the next four years. This was announced by Henk Jan Poerink, the firm’s vice president for global operations, during a conversation with media representatives. He stated that other Dutch companies will follow BESI’s example to create a semiconductor ecosystem in Vietnam. At that time, Henk Jan Poerink did not name specific firms. He also stated that the decision to invest in Vietnam by BESI was made as part of a desire to be closer to customers, without specifying details, but noting that in this case, major players in the area of electronics and semiconductors are meant.

Henk Jan Poerink told reporters last year that the company, of which he is a representative, seeks to reduce dependence on China, where it is showing growth, and operates only in the format of servicing the local expanding market.

Mark Rutte, during the specified visit last year, also expressed confidence that many Dutch companies will decide to deploy the activeness in Vietnam.

Dutch Infrastructure Minister Mark Harbers is currently in Hanoi on a visit.

As we have reported earlier, Nvidia Reportedly Sees Vietnam as Potential Second Home.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.