Intel plans another major investment into Vietnam
Thanks to the skilled workforce, the increasingly better production infrastructure and the favorable high-tech investment attraction policy, Intel continues to pour investment capital in Vietnam.
Apart from its largest chip assembly and testing plant worth more than US$1 billion in Ho Chi Minh City, US multinational technology corporation Intel plans to continue expanding its production in Vietnam.
| Intel Products Vietnam. Photo: Dantri |
The information, revealed by General Manager of Intel Products Vietnam (IPV) Kim Huat Ooi at the Ho Chi Minh City – US Business Summit on August 25, partly dispelled the skepticism of local insiders about the fate of Intel's factory in Vietnam.
Earlier, Intel CEO Bob Swan shared his intention with industry analysts to quit the fabrication business altogether and outsource its designs to a competitor’s manufacturing facilities.
Starting with a factory in the Saigon Hi-tech Park (SHTP) in District 9 14 years ago, the US investor became the first high-tech company in Vietnam with total registered capital of US$1 billion.
Stretching an area of 46,000 square meters, Intel factory in SHTP becomes the largest among Intel's inspection and assembly factories globally. Intel products labeled "Made in Vietnam" are shipped from IPV to many parts of the world.
The factory has produced two billion products as of March, and every second it can produce 25 units of semiconductor chips, computer processing chips, and devices. Intel factory in SHTP is creating jobs for about 5,000 skilled workers, Ooi said.
IPV has contributed an average value of more than US$ 3.6 billion per year to HCMC over the past 10 years. With another investment in Ho Chi Minh City in the coming time, the export revenue will increase further, Ooi stated at the summit.
The company's manufacturing activities are quite favorable thanks to the skilled workforce, the increasingly better production infrastructure and the favorable high-tech investment attraction policy so that it can continue to pour investment capital. And the story of the Covid-19 pandemic is a very good example of overcoming challenges for success, Ooi added.
In Vietnam, Intel sees rapid action and sharp policies from the government on disease control, even during this second outbreak.
IPV operations in the second half of 2020 continue to be in full gear, production volume increases by 30% compared to the normal period and has contributed three quarters of Intel’s total chip test production volume worldwide, Ooi said.
In addition to Vietnam, Intel also has chip testing and assembly plants in Malaysia and China.
Referring to this outsourcing issue, a representative from IPV said that some local news sites and newspapers translated international news stories into Vietnamese in an incomplete and inaccurate manner.
At a meeting on July 23, CEO Swan only mentioned its outsourcing for the 7-nanometer chips to keep up with its commitment to customers and Intel still focuses resources on 10-nanometer technology to meet the demand of the global technology market in the context of the pandemic.
