SAN JOSE, Calif. — As expected, Intel Corp. on Monday (Feb. 27) said it will invest $300 million to build a semiconductor assembly and test facility in Ho Chi Minh City, Vietnam.
The company also announced plans to expand it R&D operations in Israel.
Rumors have been rampant for weeks about Intel’s proposed chip-packaging plant in Vietnam. And last week, Vietnam's Ministry of Investment and Planning approved a plant investment license for Intel.
Construction of this facility will begin immediately, according to Intel (Santa Calif.). When completed and opened in 2008, the Vietnam facility will be the seventh assembly site in Intel's global network and is projected to eventually employ about 1,200 people. Intel’s other backend sites include Penang and Kulim, Malaysia; Cavite, Philippines; Chengdu and Shanghai, China; and San Jose, Costa Rica.
The company declined to comment on which products will be assembled and tested at the plant. Still, this represents one of the first such investments by the semiconductor industry in Vietnam and supports Intel's strategy to invest to meet chip demand.
"We applaud the progress the country has made in building up their technology infrastructure and the support of education programs to advance the capabilities of the local workforce," said Intel Chairman Craig Barrett, in a statement. "Intel looks forward to working with the government and public sector in Vietnam to grow their technology capabilities and competitiveness."
Meanwhile, the chip maker said it has concluded a $6 million real estate deal with the municipality of Haifa, Israel to purchase about 5 acres of land to build its largest R&D center. No government funding is involved.
The move is expected to double its development center in Haifa to 40,000 square meters and add 1,500 more employees in addition to the 2,000 employees already working there. Total cost to Intel will be nearly $20 million.
The move makes Israel one of Intel's key R&D centers. India had lobbied Intel to relocate its research center there. However, Israel will be its base for future development of the Pentium M family of processors. These would be the first Intel processors developed outside the U.S.
—Joel Bainerman in Haifa contributed to this report.
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