Vietnam a hot-house for IT companies

Intel this month announced some large expansion plans focusing on increasing production capacities in the Pacific Asia region, specifically Vietnam. The microprocessor giant said in a press release that despite having launched a major location in Vietnam earlier this year, the initial size is now too small. Intel said that its Vietnam location would be expanded from 150,000 square feet to roughly 500,000 square feet. Intel initially invested roughly $300 million USD into its Vietnam project, but now estimates that its total investment in Vietnam will mount to roughly $1 billion -- a staggering investment for the location.

According to the original press release:

The new Vietnam facility will be the largest single factory within the Intel assembly and test network. With the additional capacity plans, construction is now expected to begin in March. Production will begin in 2009 and could eventually employ as many as 4,000 people.

Intel also indicated that the reason for the major expansion is all about efficiency. According to Intel, 500,000 square feet of facility space will enable the company to produce and test new products more quickly than previously possible. Intel's vice president and general manager Brian Krzanich said "by expanding the planned size of this facility we expect to gain greater efficiency to improve our ability to meet our customers' requirements."

Besides the $1 billion investment, Intel also plans to invest another $6 billion total worldwide within the next two years. Intel's facility in Vietnam however, will become the company's largest factory within its assembly and test network. Despite its size, the facility is not a fabrication zone. DailyTech previously reported that Intel applied for a license with the Vietnamese government to open an actual fab. Other companies that have large presences in Vietnam include Western Digital and NEC. NEC opened its second major facility in Vietnam in June of this year.

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