Vietnam’s first chip plant is set to miss its 2027 target with no ASML deal yet

Vietnam is unlikely to meet its 2027 target for its first chip plant, and there is no deal yet with ASML, according to people familiar with the matter¹. The plant is likely to miss its 2027 production target².

The talks with ASML cover the purchase of a deep ultraviolet lithography machine¹. That machine prints circuitry patterns onto silicon wafers², and talks to buy it have yet to produce a deal². No timeline for concluding the purchase has been given^1,2.

The machine is the most discussed missing piece for Viettel, the company behind the project⁵. One report said concerns are growing nine months after groundbreaking, that a 32-nanometer process plan had been removed, and that the project has yet to sign a contract for DUV machines³.

Why it matters to investors

The delay shows how access to specialised tools gates new entrants to chipmaking. Chip fabs rely on ultra-specialised tools⁵, and without the lithography machine the plant cannot start production on schedule^1,2.

Export controls add a further layer. The model of the machine would determine whether Dutch export controls could apply⁴. That means the timeline depends not only on commercial talks but on which equipment Vietnam seeks and how the Netherlands treats the sale⁴.

The Vietnamese order is small against an ASML pipeline that stretches to 2030⁶. ASML shares gained 3.1% on a sector-wide AI rally⁶, a reminder that the company’s demand picture is shaped by much larger customers than a single new fab.

For countries hoping to build chip industries, the case is a reminder that announcing a plant and breaking ground³ are early steps. Securing the machines is the harder part⁵.

What to watch

The first marker is whether Viettel signs a contract with ASML^1,3. Until it does, the 2027 target remains out of reach². A signed contract would be the clearest sign that the project is back on track.

The second is the machine specification. If the model chosen falls under Dutch export controls⁴, the approval process could add further delay to a project already behind schedule¹.

The third is any revision to the plant’s technology plan, after the reported removal of the 32-nanometer process plan³. A change in the process would alter which tools are needed⁵ and how the project fits into ASML’s long order pipeline⁶.