Vietnam's inaugural semiconductor fab faces delays, ASML deal still unresolved

Vietnam’s plan to build its first semiconductor manufacturing facility near Hanoi is unlikely to achieve the slated 2027 trial-production start, sources say, because a procurement agreement with Dutch equipment maker ASML has not been finalized. On-site visits and recent satellite imagery confirm that the 30-hectare site remains overgrown and undeveloped, reflecting setbacks linked to Viettel’s limited factory-building experience and sluggish allocation of state funds.

Viettel, a military-run telecom and defence group, maintains the project is proceeding according to schedule, but unnamed insiders dispute this, noting the absence of any DUV lithography machine—a key component for 32-nanometre chip production. The plant, projected to cost roughly $1.3 billion, was originally intended to be operational by 2030 and to supply chips to aerospace, telecom and automotive sectors. Ongoing negotiations with ASML have focused on a deep-ultraviolet system, but no agreement has been reached, and it is unclear whether export controls or pricing are obstacles. While Vietnam has attracted major assembly, testing and packaging investors such as Intel and Samsung, the lack of progress on a full-scale fab highlights challenges in moving up the semiconductor value chain.