Intel to Invest Majority of its Production to Vietnam

Intel to Invest Majority of its Production to Vietnam

Intel Corporation, the U.S. chip-making mammoth, featured its first Haswell CPU manufactured at its Saigon Hi-Tech Park (SHTP) factory made in just two months. The company has also stated its plan to migrate 80% of its production to this Vietnam branch.

 

“Haswell” is Intel's fourth generation processing chips placed in nearly all computer units today including laptops, desktops and mobile cellular phones. Because of Vietnam's outstanding output since SHTP was launched in 2006, the world-class tech company has expressed its interest in implementing localization in the said country. Eighty percent of Intel's CPU targeted for the foreign market will be produced here beginning 2015. 71 pieces of its Malaysian and Costa Rica-based equipment has already been transferred to SHTP. 105 Vietnamese engineers will be flown to Malaysia for training. 159 more devices for CPU production will be imported to the country in the future.

 

Intel acknowledged that Vietnamese employees absorbed the company's technology faster than expected. There is a low error rate in Vietnam-made chips and no record of complaints or returns due to low-quality chips. Haswell is a complicated CPU yet Vietnamese workers were able to finish the product in merely two months. Intel in China Chengdu took 15 years to do so, while its Malaysian counterpart took 40 years to perfect the specific product. In 2010, just four years after the localized plant was opened, SHTP is now producing two of Intel's flagship products SOC (System On a Chip) and the challenging Haswell CPU.

 

Another advantage that its Vietnam factory brings to the American company is that the latter doesn't have to send its machinery overseas anymore which costs a lot of money and time. Intel Products Vietnam brought in U.S.$1.8 billion in export to the company in 2013. These are the reasons why localization is now among Intel's top priority when it comes to its business strategies. It made a huge investment in providing proper training to its Vietnamese workers and even adopting sustainable development to secure its excellent performance and production in the Ho Chi Minh City-based Intel plant.

 

As long as SHTP in Vietnam continues to meet the world-class standards set by Intel, it can be assured of long-term developments in many sectors of its society. There is a high guarantee of jobs available for local citizens, investors will be attracted to invest in the country and tourism will rise. In general, Vietnam's socio-economic aspect will improve greatly, thanks to the technology of Intel.