Intel has secured a licence to invest another US$475 million in Intel Products Vietnam, its single largest assembly and testing plant in the world. In November 2006 the US chipmaker announced a US$1 billion investment to build a 47,000-square-metre facility at the Saigon High Tech Park in District 9, Ho Chi Minh City.
Its Vietnam unit, also known as IPV, will use the latest funds to make 5G products, hybrid core processors, and 10th-generation core processors.
With a total investment of US$1.5 billion to date, Intel has become the biggest US high-tech investor in the Southeast Asian country, creating over 5,000 highly skilled jobs since it started operations in October 2010.
As of the end of 2020, IPV has shipped more than 2 billion products to customers worldwide, says the firm’s general director Kim Huat Ooi.
Its exports during the 10-year period amounted to over US$50 billion, including US$13.1 billion in 2020 which accounted for 68% of Saigon High Tech Park’s export value for the year.
Ooi revealed plans to increase investment in the country during the Ho Chi Minh City – US Business Summit in August 2020. He said IPV was operating efficiently thanks to quality human resources, improved infrastructure, and the city’s incentives for high-tech companies.
He also lauded the government’s efforts to combat Covid-19, which have helped the company maintain stable operations during the pandemic.
Vietnam has been expanding its role in the global tech supply chain. Aside from Intel, Samsung also set up its facilities in Bac Ninh province bordering Hanoi, and later in Ho Chi Minh City.
Amid Sino-US trade tensions, Apple is speeding up the production of iPhones, iPads, Macs and other products outside of China. On January 18 Taiwan-based Foxconn secured a licence to build a US$270 million plant near Hanoi to manufacture Macs and iPads in Vietnam. It has so far invested US$1.5 billion and is employing more than 35,000 workers in the country.
Another Apple supplier, Pegatron from Taiwan, is also injecting up to US$1 billion into Vietnam as its moves manufacturing from China.