Intel considers investing heavily in chip packaging plant in Vietnam

Intel can pour an additional 1 billion USD into the current project, according to Reuters. The news agency said the move signals an increasingly important role of Vietnam in the global semiconductor supply chain as businesses seek to reduce their dependence on China and Taiwan amid US-China tensions.

One of the sources revealed the investment could be made in the following years and even greater than $1 billion.

Reply Reuters, Intel calls Vietnam an important part of its global manufacturing network. However, the company has not announced any new investments.

Intel’s chip testing and packaging factory in Vietnam has the largest scale in the world. The company is estimated to have invested about $1.5 billion in the site. According to the source, the expansion will help manage if supply is disrupted, avoiding dependence on a single country or factory.

Vietnam is trying to expand the manufacturing industry chips, attracting foreign businesses in all three main areas of assembly, inspection and packaging; semiconductor factory (fab); design.

An American industry official commented that Vietnam possesses great potential for rapid development in chip design and assembly. In his view, Vietnam’s biggest opportunity lies in chip assembly to satisfy the market’s need to reduce excessive concentration of production on China and Taiwan. China and Taiwan account for about 60% of global capacity.

Chip design requires less capital and more skilled manpower. American giant Synopsys has been operating in Vietnam, while domestic enterprises such as FPT and Viettel have also expanded very quickly. Samsung opened a research center in Hanoi at the end of 2022 and already has a chip packaging factory in the country.

In addition to the project in Vietnam, Intel also invested more than 7 billion USD in building a chip testing and packaging factory in Malaysia, as well as setting up factories in China and the US.

(According to Reuters)