Intel Products Vietnam increases value of high-tech investment SHTP

At a meeting with businesses in early 2021, the Management Board of the Saigon High-Tech Park (SHTP) set out the goal of becoming a major contributor to the export turnover of Ho Chi Minh City. Specifically, by 2025, SHTP will strive to achieve about US$30 billion of export value, and domestic added-value will reach more than 35 percent. On this occasion, Intel Corporation also announced to invest another $475 million in the Intel Products Vietnam (IPV) factory, sending its total investment to nearly $1.5 billion.
A corner of the cleanroom in Intel Products Vietnam plant in SHTP. (Photo: SGGP)
A corner of the cleanroom in Intel Products Vietnam plant in SHTP. (Photo: SGGP)

The importance of IPV to Intel

Intel invested another $475 million in IPV - the single assembly and test plant with the largest cleanroom facility within Intel Assembly and Test (ATM) network based in SHTP. This is a new investment besides the $1-billion investment of Intel to build the most modern chip assembly and test plant at SHTP, first announced in 2006. Thus, the total investment of Intel at SHTP is now nearly $1.5 billion.

With this additional investment, IPV will increase the production of Intel's 5G products, Intel Core processors with Intel Hybrid technology, and the 10th generation Intel Core processors. In November 2006, Intel announced a $1 billion investment to build a 47,000-square-meter cleanroom facility in SHTP. It is a project with strategic importance, associated with the establishment and development of SHTP in particular, and high technology in HCMC in general. It is also the largest US high-tech investment project in Vietnam.

Up to now, IPV is the largest manufacturing, assembly, and testing facility in the Intel Assembly and Testing network and one of the nine manufacturing facilities that Intel has globally. Since its operation in October 2010, IPV has created more than 5,000 jobs for high-skilled domestic workers in many fields. “In March 2020, IPV held a celebration marking the two-billionth product produced at IPV based in SHTP. We are very proud of this important milestone, which proves the importance of IPV along with Intel in meeting the needs of customers around the world. This is also the reason why we continue to invest in our facility and team in Vietnam,” said Kim Huat Ooi, Intel Corporation Manufacturing and Operations-Vice President cum Intel Products Vietnam-General Manager.

Contributing to the development of local technology ecosystems

The IPV plant is an important part of the production chain of Intel worldwide. Along with Intel's transformation from a CPU to a multi-architecture XPU company, IPV will continue to diversify and improve its operations to adopt more complex technologies and new products, allowing Intel to take advantage of new market opportunities.

At the ceremony to grant the adjusted investment registration certificate - investment expansion phase 1, Mr. Nguyen Anh Thi, Head of the Management Board of the SHTP said that Intel's investment capital increase had a significant meaning to Vietnam, HCMC in general, and SHTP in particular. Especially in the difficult context that due to the impact of the Covid-19 pandemic, most enterprises were seriously affected. This also showed the confidence of Intel in the domestic human resources, as well as the stable investment environment in Vietnam. SHTP would continue to create the best conditions for Intel's operations and would like to welcome more US investors, who are planning to invest and expand investment in Vietnam.

Not only was the production value created, but the added-value from investment was also expanded. The number of suppliers of Intel has increased sharply, from 20 suppliers in 2010 to around 180 in 2020. Intel has contributed to Vietnam's technology ecosystem in many ways, such as policy innovation, export value, job creation, and local supply chain systems. Particularly, Intel has developed a workforce with nearly 10,000 engineering teachers being trained and awarded thousands of scholarships. In Vietnam, Intel has also provided technical expertise and management to many localities, at the same time, help to expand business activities, and provide services to foreign direct investment customers in the same industry.

IPV started construction in 2006 and was put into operation in 2010. By the end of 2020, the total accumulated export value of IPV exceeded $50 billion. It has created nearly 7,000 jobs, of which, there are 2,700 Intel employees. IPV is one of the largest places to receive US high-tech investment in Vietnam.