Dutch firms eye chips making in Vietnam

Dutch semiconductor groups and providers are planning manufacturing investments in Vietnam, top officials stated at some stage in a commercial enterprise project to Hanoi led through outgoing prime Minister Mark Rutte.

preliminary regarded investments aren’t big, but signal a shift to lessen reliance on China as a hub for exports amid increasing change tensions between Beijing and the West that have curbed the Netherlands’ sales of the most advanced chips to China.

kind of a dozen of the nearly 30 organizations that observed Rutte have been representatives of chips corporations or suppliers of semiconductor corporations, in line with the delegation’s listing.

in the course of the visit BE Semiconductor Industries (Besi), a Dutch maker of chips system, introduced it had acquired approval to make an initial funding of $5 million to lease a manufacturing facility inside the south of the us of a.

Besi’s investment is expected to develop drastically, with plans to build its own manufacturing facility in Vietnam within the subsequent four years, the business enterprise’s vp for global operations, Henk Jan Poerink, stated.

Rutte stated he become certain different Dutch chips corporations and suppliers might comply with, noting the dimensions of the business delegation accompanying him.

“It’s virtually obvious,” he instructed Reuters after he met with Vietnam’s high Minister Pham Minh Chinh.

Poerink stated Besi could be accompanied by means of different Dutch corporations to create a semiconductor “ecosystem” in Vietnam, adding that at least two other firms within the delegation were planning to invest.

He declined to call them, however delivered that every other one now not participating inside the challenge, VDL permitting technologies organization, had additionally determined to invest in the u . s . a ..

VDL ETG turned into no longer without delay available for a remark.

the main motive for investing in Vietnam turned into to get closer to Besi’s clients, Poerink said, declining to call them, however noting they were top electronics and semiconductors gamers.

Vietnam is home to Intel’s largest chip assembling factory and is likewise a chief manufacturing hub for South Korea’s giants Samsung and LG.

Poerink said the company’s method entailed relying much less on China, in which it nonetheless persevered to develop however only to serve the increasing chinese language market.

He said he planned to transport some operations from China to Vietnam, consistent with what Besi’s clients had done. “anything that is not for China … i will circulate out,” he stated, describing his customers’ approach.

other officials cited comparable motives for Dutch groups’ interest in Vietnam, specially as change restrictions growth and top companies, like chip gadget maker ASML , can no longer promote their most superior machines to Beijing.

some of the corporations accompanying Rutte are ASML providers, however the employer did now not send a consultant.