The new assembly and test facility Intel is building in Vietnam will be both the first investment of its kind by the semiconductor industry in Vietnam, and the largest single factory within the Intel assembly and test network.
Intel announced on November 10, 2006 that it will invest USD 1 billion to build a 500,000 square foot (46,451 square meter) facility in Vietnam after an internal study determined that that is the most efficient size for assembly and test facilities. In February 2006, Intel had announced plans for a smaller facility costing USD 300 million.
Construction will start in March 2006 in the 115-acre Saigon High Tech Park about 15 kilometers from the center of Ho Chi Minh City, formerly known as Saigon, and now the largest city and commercial and industrial hub in Vietnam. The facility will begin production 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."
Krzanich joined US Ambassador Michael Marine, Vietnamese Prime Minister Nguyen Tan Dung, Deputy President Truong My Hoa and other senior officials at the November 10 announcement.
"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."
When completed, the Vietnam facility will be the seventh site in Intel's global network of assembly and test sites. Others are in Penang and Kulim, Malaysia; Cavite, Philippines; Chengdu and Shanghai, China; and San Jose, Costa Rica.
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| The role of Intel assembly and test sites |
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Intel's assembly and test sites are "the last link in the chain that ensures the quality and reliability of our products and dependable schedules for our customers," Krzanich said.
Intel manufactures the chips for its microprocessors, chipsets and flash memory components in fabrication plants or "fabs." The chips then go to Intel's assembly and test sites. There employees cut the individual chips from the wafers on which they were made and insert them into the protective packages that provide the connection between the chips and other devices.
Assembly test facilities then put the packaged units through extensive testing and a final inspection before shipping them to Intel's customers.
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| Corporate responsibility—in Vietnam and everywhere else |
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Intel's assembly test facilities are often one of the largest employers and exporters in the regions where they are located. They share in Intel's worldwide commitment to corporate responsibility—in contributing to the local community, in advancing education, and in minimizing the environmental impact of Intel's operations. They also participate in Intel's world-class safety practices and performance record—among the world's best.
Assembly and test sites, along with all other major Intel sites, support educational and community programs and employee volunteer projects in their communities. Intel facility managers also work closely with local colleges and universities on joint research projects and on workforce development.
In Vietnam, Intel has already launched the Intel® Teach program to help prepare teachers to use technology to increase student learning in their classrooms. Intel Vietnam will also participate in the Intel World Ahead Program, which aims to enhance lives by accelerating access to technology for everyone. Focused on developing communities, the program integrates and extends Intel's effort to advance progress in four areas: accessibility, connectivity, education and content.
Contact information:
Vietnam Corporate Affairs
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