Intel shelves Vietnam factory expansion

Details: Manny Pham; Category: Devices & Platforms; 08 November 2023; 8747 views

Chipset manufacturing giant Intel has reportedly shelved plans to double its operations in Vietnam, a blow to South East Asian nation’s ambitions in the chipset sector, reported Reuters.

Vietnam is home to Intel’s largest factory globally and was rumoured for further expansion particularly after US president Joe Biden announced deals to support the Vietnamese chip industry during a visit in September.

Vietnam is seen as an alternative to China and Taiwan due to political stability, in comparison to China and Taiwan.

Sources speaking to Reuters said shortly after Biden’s visit US officials told businessmen and experts plans to expand the factory had been put on ice, another source said Intel had raised concerns on stability of power supplies and excessive bureaucracy.

Vietnam suffered power shortages in June, in the same period Intel had announced a US$4.6 billion plant in Poland. Malaysia also saw boost from Intel, when the US firm announced plans to construct a 3D chip packaging facility.

Apple iPhone makers Foxconn were reported to be investing $246 million into Vietnam to expand operations.