Intel Plant Put Vietnam on High-Tech Map, CEO Otellini Says
Intel Corp.’s $1 billion assembly and testing plant in Ho Chi Minh City has opened the door to more technology-related investment in Vietnam, said Paul Otellini, chief executive of the world’s biggest chipmaker.
Intel’s plant, which began operating in June, is the California-based company’s largest assembly and test facility, Otellini said in Ho Chi Minh City at a ceremony to mark the opening of the factory. The plant started production on mobile chipsets used in laptops and mobile devices, and also has the ability to make microprocessors in the future.
“I’ve been told that Intel’s investment helped put Vietnam on the map for high-tech investment and helped the country attract significant investments from several leading global technology firms, including Foxconn and Compal,” Otellini told employees and government officials at the plant today.
“This is the largest and most sophisticated assembly test facility in Intel’s global manufacturing network,” he said.
Intel also has assembly and testing plants in Malaysia, China, and Costa Rica, according to a factsheet distributed today by the company.
“Intel has bet on Vietnam, big-time,” said Than Trong Phuc, former country director for the company in Vietnam and now the managing director of investment fund DFJ VinaCapital L.P., in Ho Chi Minh City.
“Vietnam was competing against India and China for this factory,” Phuc told investors at a conference yesterday in Ho Chi Minh City. “What is emerging is a China plus one strategy, with U.S. and Japanese companies looking to diversify from China.”
Increasing Intel’s manufacturing capacity is a “critical asset” to fuel the company’s growth, Otellini said today.
“The PC industry is projecting that it will ship a million computers a day this year,” Otellini said. “Intel is inside nearly 85 percent of those computers.”
To contact the Bloomberg News staff on this story: Jason Folkmanis in Ho Chi Minh City at firstname.lastname@example.org
To contact the editor responsible for this story: Rebecca Evans at email@example.com.