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Dutch high tech firm VDL to build factory in Vietnam
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Dutch high tech firm VDL to build factory in Vietnam
Mar 20, 2024 4:17 AM

AMSTERDAM, March 20 (Reuters) - Dutch high tech firm VDL

will build a new factory to make semiconductor manufacturing

components in Vietnam, it said on Wednesday, as the Asian

country grows in importance as an assembly and packaging hub in

the chipmaking industry.

Vietnam is home to Intel's ( INTC ) largest chip packaging

and testing plant, and is attracting interest from other

chipmakers as they seek to diversify their Asian operations to

minimize the impact of U.S.-China trade tensions over

semiconductors.

VDL, which has other facilities in China and in Singapore,

said its move was not made with geopolitical considerations in

mind. However, many of its customers are following a "China Plus

One" strategy of diversifying their manufacturing base to

include locations outside China.

"VDL's global customers are asking for even better global

coverage, with local production for the local market," the

company said.

A spokesperson for the company said he could not specify the

size of the investment in northeast Vietnam, but that it would

involve "millions" of euros and the site will employ 60 workers.

Eindhoven, Netherlands-based VDL is a key supplier to

Europe's largest tech company ASML, making its wafer

handling systems, though the Vietnam factory will not supply

ASML.

The investment decision follows several visits by Dutch

companies to the region, including a scouting mission by ASML

suppliers a year ago, and a visit by Prime Minister Mark Rutte

in November that led to an investment by Dutch chip packaging

equipment maker BE Semiconductor Industries.

VDL's investment was announced on Wednesday as the Dutch

Infrastructure Minister Mark Harbers is visiting Hanoi.

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