Dutch Chipmakers Venture to Manufacture in Vietnam

During a business mission to Hanoi led by outgoing Prime Minister Mark Rutte, top officials informed Reuters on Nov 2 that Dutch semiconductor companies and suppliers are strategizing manufacturing investments in Vietnam. The initial known investments may not be substantial, but they indicate a deliberate move to decrease dependence on China as a primary export hub. This decision comes in response to escalating trade tensions between Beijing and Western countries, which have resulted in a decline in the Netherlands' exports of cutting-edge chips to China.

According to the delegation's list, around twelve out of the almost 30 businesses that accompanied Rutte were either representatives of chip companies or suppliers to semiconductor firms.

During their visit to BE Semiconductor Industries (Besi), a Dutch manufacturer of chip equipment, they revealed that they had been granted permission to proceed with an initial investment of $5 million to lease a factory located in the southern region of the country.

Besi's investment is expected to grow significantly, with plans to build its own factory in Vietnam within the next four years, the company's vice president for global operations, Henk Jan Poerink, told Reuters. Rutte said he was sure other Dutch chips companies and suppliers would follow, noting the size of the business delegation accompanying him.

"It's clearly evident," he told Reuters after he met with Vietnam's Prime Minister Pham Minh Chinh.

Poerink said Besi would be followed by other Dutch companies to create a semiconductor "ecosystem" in Vietnam, adding that at least two other firms in the delegation were planning to invest. He declined to name them, but added that another one not participating in the mission, VDL Enabling Technologies Group, had also decided to invest in the country.