Vietnam is unlikely to meet its 2027 trial production target for its first semiconductor plant near Hanoi. Developer Viettel, a military-run telecom and defense group, has yet to reach an equipment deal with ASML.

Viettel broke ground in January, but a site visit and satellite images showed no buildings had been built.

Three people familiar with the matter said Viettel had been in talks with ASML for months. Two said the discussions covered a deep ultraviolet (DUV) lithography machine.

Another person familiar with the project said Viettel lacked experience in building chip factories and faced hurdles in securing government funding. Viettel said the project, estimated by authorities to cost about US$1.3 billion, remained on schedule.

Vietnam targets semiconductor industry turnover of US$100 billion by 2050 and is expanding its chip-packaging footprint while seeking to establish wafer fabrication.

Reporting on ASML export restrictions has focused on China. It was unclear whether the proposed sale to Viettel would be subject to Dutch export controls.

🔗 Source: Reuters