Intel announced today that it will increase the size of the assembly and test facility it is building in Vietnam from 150,000 square feet to 500,000 square feet and raise its investment from the USD$300 million announced in February to USD$1 billion. Intel decided to increase the size of the facility after an internal study determined that 500,000 square feet was the most efficient size for assembly and test facilities.
The new Vietnam facility will be the largest single factory within the Intel assembly and test network. With the additional capacity plans, construction is now expected to begin in March. Production will begin in 2009 and could eventually employ as many as 4,000 people.
“By expanding the planned size of this facility we expect to gain greater efficiency to improve our ability to meet our customers’ requirements,” said Brian Krzanich, vice president and general manager, Assembly and Test. “500,000 square feet is the optimum size based on multiple factors enabling us to increase our efficiency. The Vietnam facility will be the model for larger, more efficient assembly and test facilities that will make Intel even more competitive.”
“Intel has enjoyed a strong, constructive working relationship with the Vietnam government, both at the local and national levels,” said Rick Howarth, general manager of Intel Products Vietnam. “We were very pleased that the discussions with the local authorities went smoothly so we could significantly expand the facility’s size.”
The Vietnam facility is part of Intel’s worldwide expansion of production capacity. By the end of this year, the company plans to invest nearly USD$6 billion worldwide for capital additions. When completed, the Vietnam facility will be the seventh assembly and test site in Intel’s global network. Other sites include Penang and Kulim, Malaysia; Cavite, Philippines; Chengdu and Shanghai, China; and San Jose, Costa Rica.
Intel Vietnam will also participate in the Intel World Ahead Program, which aims to enhance lives by accelerating access to technology for everyone, anywhere in the world. Focused on developing communities, the program integrates and extends Intel’s effort to advance progress in four areas: accessibility, connectivity, education and content.