80% of global production of Intel’s latest CPU made in Vietnam

Sherry Boger & Le Manh Haby Aug 2015.The 4th generation ‘Haswell’ CPUs were made at Intel’s SHTP factory over the course of two months. The company has imported 71 pieces of equipment from factories in Malaysia and Costa Rica and sent 105 Vietnamese engineers to their Malaysian factory for training. It plans to import 159 more devices to ramp up CPU production in the near future.
Intel Products Vietnam’s factory opened in 2006 and began assembling and testing semiconductor components in 2010. It achieved over US$1.8 billion in exports last year. As of June, the factory has provided more than 1,000 jobs and attracted 80 component providers, including Vietnamese ones. Intel began production in Vietnam in June 2010 with chipsets for laptops and mobile devices. It later launched Atom SoC (System on a Chip) in late 2013.

Intel Pentium Haswell Chip #3The debut of Intel’s first CPU product proves that Vietnam in general and Ho Chi Minh City in particular is an attractive destination for the world’s hi-tech companies, said Vice Chairman of the municipal People’s Committee Le Manh Ha.

The abilities of the Vietnamese employees to adapt Intel technologies are great and meet the expectations of the chipmaker.

This could be proven by the chip production of the Intel Products Vietnam plant, located at the Saigon Hi-Tech Park (SHTP) in District 9, over the years. The error rate of the made-in-Vietnam chips is low and no customer has ever asked to return the products because they were defective, according to the CEO.

Intel Products Vietnam has more than 1,000 local employees and it took them only two months to be certificated to produce the Haswell processors, which the CEO said is an unexpected success for such a new, hard-to-make product. The Vietnamese plant is making two of Intel’s flagship products, the SOC (system on a chip), used for tablets and smartphones, and the Haswell CPU, four years after the chip-making titan began its operations at the SHTP in 2010.

It took the Intel factory in China’s Chengdu 15 years, and one in Malaysia 40 years, to reach a similar milestone.

The localization rate of the Vietnamese plant is “not really high,” with only a few local enterprises qualified to be its equipment and parts suppliers, but Intel always welcomes Vietnamese suppliers to join its production as it would save money and time because the chipmaker currently has to have its machinery repaired overseas.

Intel targets an 80 percent localization rate in Vietnam, but it can only be achieved if the local suppliers improve themselves to meet the high technology standards of the chipmaker. In 2010 only three Vietnamese firms could supply parts for the Intel plant, and the figure has risen to 16 after four years.

Intel has made continuous efforts improve education and skills for staffs and engineers throughout Vietnam. “We have also made a great investment in developing the sustainable environment. For example, a solar system of Intel Vietnam has provided 30% the electric power for this building. In addition, 100% industrial waste water have been processed to irrigate plants.”

Intel’s contributions to HCM City development hailed

Secretary of the Ho Chi Minh City Party Committee Le Thanh Hai has said that Intel Products Vietnam Co. Ltd’s effective investment has greatly contributed to the city’s socio-economic development, especially in training high-quality human resources.

Read more …

Intel to make Vietnam its CPU hub in 2015, Jul 30, 2014

Intel launches “Made-in-Vietnam” CPU, Jul 30, 2014

80% lượng CPU của Intel trên toàn cầu sẽ sản xuất tại Việt Nam, Jul 30, 2014

80% of Intel’s 4th generation CPUs will be made by Intel Vietnam by 2015, Jul 30, 2014

Intel Vietnam will produce most of Intel’s global CPUs, Jul 31, 2014

Published: Aug 4, 2014. Updated: Aug 11, 2014.

About the author  ⁄ AmCham Vietnam

AmCham is an independent association of companies with the objective of promoting trade and investment between Vietnam and the U.S. With two chapters, one in Ho Chi Minh City and one in Hanoi, our membership of 700 companies and 1,500 representatives is unified by a commitment to promote trade and investment between Vietnam and the United States.

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