U.S.-based chipmaker Intel Corporation will relocate a part of its production facility in Malaysia to Vietnam as well as China in an effort to cut labor costs, according to government website chinhphu.vn. The relocation of the Intel plant in Kulim to facilities in Ho Chi Minh City and Chengdu (China) will result in the layoff of 600 Malaysian workers at the plant, chinhphu.vn reported, quoting Malaysian news website The Star. In addition to the relocation, the Kulim plant, specializing in manufacturing motherboards and assembling processor packaging since 1995, will receive new technology products from places like Costa Rica to support the server market and other trendy consumer electronic products, The Star reported. Intel has employed about 8,000 Malaysian workers, more than 40 percent of whom are working for the Kulim plant. That smartphones are increasingly popular has led Intel to change strategy and promote the production of processors at a higher level, the Malaysian news website said. Many technology corporations like Samsung, LG, and Microsoft have also been also moving production bases to Vietnam due to the advantage of cheap labor and the strategic location of the country as a gateway to the Southeast Asian region. Gearing up Intel Products Vietnam CEO Sherry Boger in November last year announced that the company would install a second production line to manufacture computer CPUs at its Ho Chi Minh City factory, part of Intel’s effort to expand the production of its flagship products in the Southeast Asian country. Four months earlier, Sherry Boger had said that eighty percent of the Intel semiconductor chips used in computers around the world would be made at its plant in Ho Chi Minh City by August 2015. Meanwhile, the 4th generation Haswell CPUs would be produced at the plant in the Saigon Hi-Tech Park in District 9 by October last year, Boger told local media then. To achieve the target, the company had imported 71 pieces of equipment from factories in Malaysia and Costa Rica and sent 105 Vietnamese engineers to the Malaysian factory for training. It would import 159 more devices to ramp up CPU production in Vietnam, she added. 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 was an unexpected success for such a 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 after the chip-making titan began its operations at the SHTP in 2010, Boger told Tuoi Tre (Youth) newspaper in July last year. It took the Intel factory in China’s Chengdu fifteen years, and one in Malaysia 40 years, to reach a similar milestone, Boger added. In April 2014, Intel announced that it would transfer the assembly facility from Costa Rica to Asia to enhance competitive advantage.
More
TikTok Shop’s Q1 revenue triples Lazada's in Vietnam
TikTok Shop’s turnover increased 15.5 percent over the last quarter of 2023
Read more
Severe flood wreaks havoc on Nha Trang
7 years agoHighlights
Construction ministry cracks down on 22 illegally built villas in Vietnam’s Lam Dong
The 22 villas were built without a permit
Vandals paint cars red in Hanoi
17 hours agoPhotos
Artist paints murals on house to raise awareness of COVID-19 prevention in Hanoi
He drew the virus, vaccine, and earth on the exterior walls of a house
Latest news
Construction ministry cracks down on 22 illegally built villas in Vietnam’s Lam Dong
The 22 villas were built without a permit
New cave with stunning stalactites found in Vietnam’s Quang Binh
The cave is two kilometers long
Central Committee of Communist Party of Vietnam agrees to resignation of top lawmaker Vuong Dinh Hue
The 13th Party Central Committee convened a meeting in Hanoi on Friday to discuss and give opinions on relieving Hue of all his political roles and ending his public service
Colombia's Chiribiquete park to receive $1 million annually for at least 30 years
Colombia's parks agency, the Frankfurt Zoological Society and German fund Legacy Landscapes on Thursday launched a financial mechanism to fund Chiribiquete National Park with $1 million each year for at least 30 years
Rest stops unavailable along 100km-long expressway in Vietnam’s Mekong Delta
Apart from the absence of rest stops, the Trung Luong-My Thuan Expressway currently has just two lanes and no emergency shoulder
'Extreme' climate blamed for world's worst wine harvest in 62 years
Australia and Italy suffered the worst
Over 100 Vietnamese cargo vehicles have been kept in China since early 2023
The situation was attributed to contract disputes and drivers’ failure to preserve goods
Foreign visitors amazed by night stay in northern Vietnam ethnic village
In the central living area of a traditional Mong ethnic house in Lao Xa Village, Sung La Commune, located in Dong Van District of Ha Giang Province, northern Vietnam, over a dozen guests congregated around hot dinner trays prepared by a millennial local man and his wife.
Netherlands tops EU investors in Ho Chi Minh City: vice-chairman
The support from the government and Dutch investors is making practical contributions to Ho Chi Minh City
Glamping sites encroach on Ho Chi Minh City rivers, canals
Glamping has become a new tourism trend among the young