Intel expands chip supply chain in Vietnam

THE HANOI TIMES — Intel, the US chipmaker, plans to deepen collaboration with local suppliers and expand its network in Vietnam, said Naga Chandrasekaran, Chief Global Operations Officer, Executive Vice President and General Manager of Intel Foundry Manufacturing and Supply Chain organization.

Chandrasekaran highlighted Intel's commitment to strengthening Vietnam's high-tech supply chain at the Intel Strategic Parts Supplier Summit in Ho Chi Minh City on April 1, which brought together over 40 leading domestic and international semiconductor suppliers and manufacturers.

At the event, he announced that Intel will reach four billion products manufactured in Vietnam in April. By the second half of the year, the company is projected to contribute US$100 billion to Vietnam's total export revenue. These milestones show the critical role of Intel's assembly and test facility in Vietnam within its global operations.

Chandrasekaran acknowledged the Vietnamese Government's efforts in developing infrastructure and supporting the industry. Since 2006, Intel's Vietnamese factory has expanded its supplier network to 600 partners.

He said the summit serves as a platform to create opportunities for suppliers, develop workforce, and drive innovation within Vietnam’s semiconductor ecosystem.

Suppliers attending the event expressed interest in receiving more defined production plans from Intel to better prepare for future demand. Dave Bloss, Intel's Vice President of Global Supply Chain, noted that the company offers support programs for domestic firms looking to become Intel suppliers. Moreover, Intel is working with partners to train employees and identify top talent for the company.

Saigon Fabrication (Fab-9 Vietnam), an Intel PCB supplier for two years, took a decade to meet Intel's stringent requirements but Intel provided crucial assistance in bringing the factory up to its standards, CEO Viet Tran told Vietnam Investment Review. Currently, Intel sales account for 30% of the company's revenue and possible 50% next year as the company expands production.

Nguyen Ky Phung, Head of the Saigon Hi-Tech Park (SHTP)'s Management Board, reaffirmed the center's commitment to creating an attractive investment environment and supporting Intel’s supply chain expansion.

He urged  Intel Products Vietnam (IPV) to continue workforce training and boost supply chain to support Vietnam's semiconductor industry.

Meanwhile, Susan Burns, US Consul General in Ho Chi Minh City, highlighted semiconductor and high-tech cooperation as key to Vietnam-US relations. She emphasized that the event reaffirmed Intel and the US’ commitment to strengthening Vietnam's semiconductor supply chain while showcasing how government-private sector collaboration can advance the country's high-tech vision.