HO CHI MINH CITY
Friday ,Oct 29,2010, Posted at: 15:31(GMT+7)
Intel inaugurates $1 billion chip plant in Vietnam, says biggest ever

Intel, the world’s largest chip maker, opened its Vietnam US$1 billion assembly and test facility on Friday in Ho Chi Minh City, saying the facility is the US corporation’s biggest in the world.

A drum performance for the grand opening of Intel’s Vietnam factory in Ho Chi Minh City on Oct. 29, 2010 (Photo: Tuong Thuy)

Intel President and CEO Paul Otellini and representatives of the Vietnamese government joined a grand opening ceremony held at the plant, which Intel says the largest and most advanced assembly and test facility in its global manufacturing network.

“Today, we’re celebrating a remarkable milestone – the inauguration of Intel’s newest and largest assembly and test facility, right here in Ho Chi Minh City. This is a remarkable achievement in which nearly everyone here played a key role,” Mr. Otellini said.

Intel President and CEO Paul Otellini launches the Vietnam factory in Ho Chi Minh City on Oct. 29, 2010 (Photo: Tuong Thuy)

“Over the summer, the factory started packaging and testing chipsets for laptops and shipping them to our customers around the world. Once fully ramped, the facility is expected to create several thousand jobs, and will be among the biggest exporters in
Vietnam.

“When we announced our investment 4 years ago, this was Vietnam’s first $1 billion high-tech project and the biggest-ever investment from an American company. I’ve been told
that Intel’s investment put Vietnam on the map for high-tech investment and helped the country attract significant investments from several leading global technology firms, including FoxConn and Compal.”

The plant is located inside Saigon Hi-Tech Park in District 9.

“First, this is the largest and most sophisticated assembly test facility in Intel’s global manufacturing network – double the size of anything we have built prior. The clean room alone measures 46,000 square meters, equal to the size of five-and-a-half football fields,” said Otellini.

“Then, there are the 400 new, local employees that have already joined the Intel family. Our Vietnam factory employees have received a hundred thousand hours of on-the-job and classroom training and earned hundreds of different types of technical certifications. The employees that work for us here are much more valuable to us than the physical plant itself."

“When fully utilized, the Vietnam factory will dramatically increase our assembly and test capacity for Intel. It will help us deliver products for mobile computers, which are currently the fastest growing and largest portion of the PC market around the world.

“This factory is truly remarkable, and it will produce products that are platforms for future creativity. Our customers will use them to build world-changing technology.”

Speaking at the event, Vietnamese Deputy Prime Minster Hoang Trung Hai said, “The opening of the assembly and test facility in Vietnam is an important event and supports our goal of accelerating economic transformation led by technology-intensive industries.”

“Intel is also a committed partner for Vietnam government in modernizing the national education system. Intel helps to build a robust information technology ecosystem while fostering local innovation and creating significant high-tech job opportunities.”

“The Vietnamese government views this as an important and meaningful project for the success of the National Strategy of Information Technology Development by 2020,” said the Deputy PM.

Intel President and CEO Otellini reiterated his corporation’s long-term commitment to Vietnam and highlighted the importance of the support Intel has received over the past 4 years from the government, Saigon Hi-Tech Park, suppliers and local employees.

(L-R) Intel Products Vietnam general manager Rick Howarth, Intel Corp. vice president Steve Megli and American Ambassador to Vietnam, Michael Michalak, attend the grand opening of Intel’s Vietnam factory in Ho Chi Minh City on Oct. 29, 2010 (Photo: Tuong Thuy)

Meanwhile, Intel Products Vietnam Co., Ltd. general manager Rick Howarth said, “Assembly and test is a critical final step in the end-to-end manufacturing of Intel’s silicon products.”

“We were attracted to Vietnam by a vibrant, skilled workforce with strong potential to increase the complexity and value-add of their contribution to Intel’s global business.”

The facility is one of seven operated by Intel worldwide.
Hochiminh City People Committee chairman Le Hoang Quan said at the ceremony, “City leaders appreciate the efforts of Intel corporation worldwide and  Intel Products Vietnam in both implementing the project and providing consultancy and supports of IT training and development, and community activities, particularly in District 9 where Saigon Hi-tech Park locates.”

“We hope that Intel Corporation and Intel President to continuously provide directions, sufficient technologies and marketing expertise in order to help this Intel factory to come into full operation with high quality products, bringing benefits to Intel and the city.”
 
“Besides, city leaders also request Intel Corporation to support the city to develop the supporting industries for Intel products at Saigon Hi-tech park, contributing to increase the localized portion in Intel chip production.”

Intel is the first major foreign investor in high technology in Vietnam. The country’s Ministry of Investment and Planning issued an investment license in Feb. 2006 for Intel to build a US$300 million assembly and test facility to produce chips and computer parts. The chip manufacturer later increased its Vietnam investment to US$1 billion.

Construction started in 2007. 

By Tuong Thuy
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