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Lintel to invest $300M in Vietnam
The chipmaker plans to build a factory in Ho Chi Minh in 2007 would be biggest investment in Vietnam by a U.S company.
February 28, 2006, 5:56 AM EST
HO CHI MINH CITY, Vietnam(Reuters)-Intel Corp , the world’s largest chipmaker, said it would invest $300 million to build a factory in Vietnam to package and test microchips that power personal computers and mobile phones.It marks the biggest investment in Vietnam by a U.S company , and Intel has an option to double its investment in the country .
Construction of the plant in Ho Chi Minh City will begin soon , and production will start in the second half of 2007, Intel (Research) chairman Craig Barrett said Tuesday at a ccremony in the city to receive the investment license from the Vietnamese government . “This plant will be our seventh in the word , serving the (global) 250 million-unit PC market and the 800 million-unit phone market , which uses a lot of our flash (memory) chips,” Intel Asia Pacific Vice President John Antone told Reuters in an earlier interview in Hong Kong.The factory , which would employ about 1200 people ,might also test and package a small proportion of chips that go into network devices and consumer electronics gadgets , he added .Antone said the $300 million investment was for the development of the first phase of the factory between now and 2008 , and is part of the factory , which would double the initial investment amount to $605 million . But the decision on whether to proceed with phase two would be made after 2008 , and would depend on factors such as factory yield and market conditions ,Antone said .Small step , long journey .California-based Intel has an option to build a second phase for the factory ,which would double the initial investment amount to $605 million .But the decision on whether to proceed with phase two would be made after 2008, and would depend on factors such as factory yield and market conditions , Antone said .“We consider this as one small step in a long journey in Vietnam,” Barrett said .Vietnam has projected $2 billion worth of electronics products exports for 2006 , up nearly 40 percent from 2005 , industry reports show .Vietnam expects to receive $6 billion in foreign direct investment in 2006 , including funds for major technology and infrastructure projects , compared with $5.8 billion last year .