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Dutch high tech firm VDL will build a new factory to make semiconductor manufacturing components in Vietnam,it said as the Asian country grows in importance as an assembly and packaging hub in the chipmaking industry.

Vietnam is home to Intel's(INTC.O),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(ASML.AS),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(BESI.AS).

About VDL ETG

VDL Enabling Technologies Group is a 'tier-one contract manufacturing partner' with global operations.

The range of services offered by the VDL ETG units includes engineering, prototyping and serial manufacturing of products characterised by high complexity and relatively small production numbers.They also provide customer-specific production mechanisation, the area that VDL ETG Projects focuses on.

Under the Philips flag VDL ETG developed into a worldwide supplier of high-quality mechanical components,modules and complete systems.As part of VDL Groep, they are now even better able to adopt a leading position.

VDL ETG support they customers around the world from our production units in Eindhoven (NL), Almelo (NL), Trübbach (CH), Singapore and Suzhou (China).

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