Intel Explores Ramping Chip Investment In Vietnam: Report - Intel (NASDAQ:INTC)

Intel Corp INTC reportedly eyes a significant ramp-up of its $1.5 billion investment in Vietnam to expand its chip testing and packaging plant in the Southeast Asian nation.
The multi-year initiative entailing around $1 billion reflects a growing role for Vietnam in the global supply chain for semiconductors to cut reliance on China and Taiwan, Reuters reports.
Intel also weighed alternative investments in Singapore and Malaysia over Vietnam.
Also Read: Vietnam Wins Additional Investments From Samsung, LG
Intel already has extra land where its plant is based, and an expansion in Vietnam would help it better manage supply disruptions stemming from relying heavily on a single country or a plant. However, Intel did not want the U.S. to perceive it as hostile by boosting chips in a non-U.S. location.
Vietnam courted foreign companies to boost its chipmaking industry.
However, a U.S. industry executive found Vietnam capable of cheaper-to-build fabs for less sophisticated, bigger chips still in high demand, like the ones catering to cars, the report adds.
The executive said Vietnam's most significant opportunity was in the chip assembling sector to satisfy industry demand to reduce the "over-concentration" of production capacity in China and Taiwan.
Price Action: INTC shares traded lower by 0.58% at $27.57 in premarket on the last check Friday.
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