Intel Vietnam plans two step first $300 million

EST on February 27th (Beijing time February 28th) news: Intel announced that it will be days before the $300 million investment in Vietnam to set up a factory for manufacturing chip packaging and testing.

Intel on Tuesday in Vietnam Hu Zhiming city held a celebration of receipt issued by the government of Vietnam investment license celebration, Intel chairman Craig Barrett said during the celebration, the factory will soon be in the city of Hu Zhiming commenced, is expected in the second half of 2007 started production.

Told the Reuters in Hongkong before the Intel John Antone vice president of Asia Pacific, said: "this factory is a factory of our company will be established in the world of the seventh services in the global computer market and telephone market, the global market demand for very large amount of flash memory chips."

The plant will employ 1200 employees, as well as testing and packaging some of the chips used in networking and consumer electronics.

Antone said the first $300 million investment funds will be used for investment and development during the manufacturing plant in the first stage, from now until 2008, this investment will be included in Intel's $6 billion within the global capital budget this year.

Intel has the right to choose whether or not to invest in the second phase of the plant, if it continues to invest in the first phase of investment after the end of the selection, then Intel will invest a total of $605 million in vietnam. As to whether it will conduct the second phase of the investment, the plant will be in the first phase of the investment income and market conditions.

"We think this is just a small step in the long-term development of our company in Vietnam," Barrett said."

Vietnam in 2006 has been planning a $2 billion export of electronic products, compared with almost an increase of 40% in 2005.

Vietnamese authorities are expected to receive $6 billion in foreign investment in 2006, the investment is expected to include important technology and infrastructure projects. It received $5 billion 800 million in foreign investment last year.

Intel is a unified palace in the city of Hu Zhiming (Reunification Palace) to accept the Vietnamese authorities issued to its investment licence in 1975, before the war, the government has the support of the United States is the unity of the South Vietnamese government office.

As early as at the beginning of 2001 with Intel on the plan to start negotiations on behalf of prime minister Nguyen Tan Dung said Vietnam, Vietnam youth and the government in the development of high-tech showed great enthusiasm and determination of the Intel company decided to the key role of investment in vietnam.

Intel will be its chip testing and packaging are placed in the Asian region, it has been in the city of Penang in Malaysia and Kulim City, Cavite city and Philippines islands Chinese in Chengdu city and Shanghai city have established a manufacturing plant.