Power supply is the largest risk factor affecting Intel’s decision to expand its investment and operation in Vietnam, the chip maker said at a conference in Hanoi on Tuesday.

Intel is hesitant over investment expansion due to the instable power supply, Sherry Boger, CEO of Intel Products VN, told reporters.

Intel began to realize that power instability was affecting its Vietnamese operation, located at the Saigon High-tech Park in Ho Chi Minh City’s District 9, in November 2012.

The company then worked with EVN HCMC, the Park’s management, and National Power Transmission 4 on a solution to ensure supply for the power grid.

The issue, however, remained unsolved when Intel reevaluated it in April.

At a meeting held that month, the company expressed hope that the Vietnamese side would focus more on ensuring power supply stability.

Intel, headquartered in Santa Clara, California, is the world’s largest and highest-valued semiconductor chip maker by revenue.

It operates a chip-making facility worth $1 billion in HCMC.