Expansion
Vietnam's First Chip Plant Unlikely to Hit 2027 Target as ASML Deal Remains Unreached
By News Desk ·
Key takeaways
- Viettel's first semiconductor plant near Hanoi is unlikely to meet its 2027 trial production target, with no ASML equipment deal reached.
- Talks with ASML have covered the purchase of a deep ultraviolet lithography machine, according to three people familiar with the matter.
- Authorities have estimated the plant's cost at about $1.3 billion, and Viettel broke ground on the site in January.
Vietnam is unlikely to meet a 2027 target for its first semiconductor plant to begin a trial production run, with no deal yet reached to buy chipmaking equipment from ASML, Reuters reported on October 26. The plant, developed by military-run telecoms and defence group Viettel, has an estimated cost of about $1.3 billion.
Viettel's Hanoi Plant and the ASML Talks
The site on the outskirts of Hanoi remains covered in wild vegetation, a Reuters visit there last week showed. Satellite images taken in January by Planet Labs PBC and by Airbus in October confirm that no buildings have been constructed. A person with direct knowledge of the project said the 2027 target would probably not be achieved because of delays stemming from Viettel's lack of experience in building chip factories and administrative hurdles in quickly securing government funding. The government-mandated project is ongoing but the timeline is unclear, the person said.
Viettel said in a statement to Reuters that the project was "progressing in line with the established plan and schedule." "Project activities are being carried out in phases, in accordance with the project's technical and implementation requirements. We will provide further updates at an appropriate time," it said. Vietnam's finance ministry did not respond to requests for comment, and a representative for ASML declined to comment on the talks with Viettel.
Talks with ASML have been underway for months, said three separate people familiar with the matter. The talks have covered the purchase of a deep ultraviolet (DUV) lithography machine, needed to print circuitry patterns onto silicon wafers, two of the people said. Viettel broke ground on the site in January and said at the time it wanted the plant fully operational by 2030, intending to supply its chips to the aerospace, telecom and auto sectors. Viettel said in a January presentation that it planned to produce semiconductors using 32-nanometre technology, a reference subsequently removed from its website.
ASML's Development Alliances
According to akta.pro company records, ASML joined IBM's development alliance in June 2026, alongside Lam Research, Tokyo Electron, and SCREEN, to commercialize sub-1nm 0.7nm nanostack chip architecture, with its High-NA EUV tools positioned as essential to the path to production. The same records show ASML partnered with TNO in June 2026 to establish a photonic chip pilot line at High Tech Campus Eindhoven, deploying DUV and I-Line systems to manufacture 6-inch Indium Phosphide photonic chips. ASML, imec, and TSMC also demonstrated integration of n-type and p-type 2D-material transistors on a single 300mm wafer at 50nm contacted poly pitch in June 2026.
ASML's Recent Quarter and China Competition
ASML reported 55% revenue growth and doubled quarterly profit, FinanzNachrichten.de reported on October 24. State-owned Shanghai Aishengna began mass-producing domestic immersion DUV lithography machines, targeting ASML's China revenue segment, 247wallst reported on October 23. ASML said this month it may not fully meet demand for its most advanced machines over the next two years because of the AI boom, while supply constraints for older-generation equipment are expected to be less severe.
What Comes Next for the Project
Viettel has said it wants the plant fully operational by 2030. The company said it will provide further updates at an appropriate time.