Intel postpones its expansion investment plan in Vietnam
(Reuters Hanoi, 7th) Reuters cited informed sources in a report, stating that Intel, the leading American chip industry player, had a previously planned investment in Vietnam that could have nearly doubled its local business. However, the project is now on hold.
Intel is rumored to have shelved plans to expand investment in Vietnam
This news comes as a significant blow to Vietnam, which has been increasingly aggressive in attracting investment in the semiconductor industry. Vietnam is a hub for electronic manufacturing in Southeast Asia and is home to Intel’s largest chip assembly and test facility, eagerly anticipating Intel’s expansion investment. When U.S. President Biden visited Vietnam in September this year, he reached a bilateral agreement to support Vietnam’s semiconductor industry.
Amidst political risks and tense trade relations, Vietnam has actively positioned itself as an alternative to China and Taiwan. However, a source who participated in a meeting informed Reuters that shortly after Biden’s visit to Vietnam, U.S. officials told a group of selected American businesspeople and experts that Intel had shelved an expansion project in the country.
This information is still confidential, and the sources requested anonymity. It was revealed that Intel made this decision as early as around July this year, but the reasons for suspending the expansion plan were not disclosed. However, another source who attended two different meetings with U.S. business executives and senior Vietnamese officials recently disclosed that Intel had expressed concerns about the stability of Vietnam’s power supply and excessive bureaucracy.
One of the meetings took place in Hanoi last week, and Vietnam’s Deputy Prime Minister Tran Luu Quang was also present.
When asked about the project-related issues, Intel declined to comment, only stating, “As semiconductor demand continues to increase, Vietnam remains an important part of our global manufacturing operations.”
The U.S. Embassy in Hanoi had no comment, and the Vietnamese government has yet to respond.
Vietnam has been actively seeking a more significant role in the global semiconductor industry, and if Intel does indeed pivot away, it would be a major setback for Vietnam. Vietnamese authorities have been in talks with chip manufacturers, hoping to convince companies looking to develop diversified supply chains to invest locally.
In June this year, Intel announced a major investment plan in Europe, while Vietnam faced power shortages, leading many manufacturers to suspend production. Intel has also expanded its investment in chip packaging facilities in Malaysia, a major competitor for Vietnam in Southeast Asia.
During Biden’s visit to Hanoi, the White House announced new plans and investments from several U.S. chip companies, including Amkor, Synopsys, and Marvell, but Intel was not mentioned.
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