Intel to make heavy investments in Vietnam

Intel is reportedly going to invest some $1 billion in a new facility in Vietnam, creating the largest single factory in its global assembly and test network. "By expanding the planned size of this facility we expect to gain greater efficiency to improve our ability to meet our customers' requirements," Brian Krzanich, Intel's vice president and general manager for assembly and test, said in a statement. "Fifty thousand square feet is the optimum size based on multiple factors enabling us to increase our efficiency. The Vietnam facility will be the model for larger, more efficient assembly and test facilities." Intel said the capacity boost means construction of the new facility would not begin until next March. The plant is expected to move to production by 2009, and the chip maker said the Vietnam operation could eventually employ as many as 4,000 people. Executives also praised the Vietnamese government for amending the terms of Intel's original investment license, which would have allowed the company to pump up to $605 million into the Saigon Hi-Tech Park project. Intel said the Vietnam facility was part of a "worldwide expansion of production capacity" that will cost nearly $6 billion by the end of 2006. Intel is also adding Vietnam to its "World Ahead" program, which funds technology and communications infrastructure and education initiatives in developing countries.