Intel chipset factory ready to ship in July

Intel is set to start shipping its first products from Vietnam’s factory in July, two months after running its first chain on trial basis.

The $1 billion factory chipset is set to produce Ibex Peak as the first product and Intel latest micro processors.

After three to five years the factory is scheduled to completely fill up capacity. The facility construction was started in 2007.

“We are running the factory’s first chain and we expect to export our first initial products in July before officially launching the factory, scheduled in

October,” said an executive from Intel Products Vietnam.

Chip set volumes in 2010 will be around six million units to create an estimated export revenue of $120 million. When the factory reaches its full capacity of 820 million units, the export revenue will be $5-15 billion.

The chip set-maker also predicts that its direct material suppliers will come to Vietnam in late 2010 or 2011. Intel will also work with the Vietnamese government to change policies to make cost structures equal between companies in

Vietnam and outside suppliers. For the time being, it is cheaper for Intel to buy materials from outside Vietnam as it does not have to pay value-added tax and import duties.

Intel is completing work relating to its factory, warehouse and clean house on 47 hectares in HCM City’s Saigon Hi-Tech Park. The first phase of construction is on half of the land and the producer can extend the facility on the remaining area.

Intel Products Vietnam last week awarded scholarships for 22 Vietnamese top engineering students under the second cohort of Intel Vietnam Study Abroad Programme. The students will study at Portland State University in the United States during the academic years 2010-2012. The programme is intended to train engineers for Intel’s assembly and test facility Vietnam.

Intel will need around 500 staff in the factory once it comes into operation and 4,000 workers when it runs at full capacity. The producer will also recruit and send 150 students to the US for studying manufacturing in January, next year.

The Intel Vietnam Study Abroad Programme was introduced in December 2008 and sought qualified engineering students to study in a US academic environment for two years. Some 28 students were selected in 2009 combining with 22 students in 2010. Intel also supports the development of Vietnam’s talent pipeline with industry-aligned technical curriculum, lab facilities and internships for both faculty and students.

Intel Products Vietnam continues its annual local ‘engineering scholarship programme for the third consecutive year. This year Intel supports 83 students from 5 universities to improve their English skills at British Council and Queensland English Language Institute in Hanoi, HCM City and Da Nang.

Receiving the investment certificate in 2006, Intel chipset factory is still the largest hi-tech project in Vietnam in term of investment capital to date.

VIR

Tags: Intel, Intel chipset factory, Vietnam infotech