February 28, 2006 – Intel Corp. plans to invest $300 million to build a semiconductor assembly and test facility in Ho Chi Minh City, Vietnam, the industry’s first such foray into the nation. Construction will begin immediately; a completion date was not given. The site would be Intel’s seventh such assembly site worldwide, joining operations in China, Costa Rica, Malaysia, the Philippines, and the US.

“We applaud the progress the country has made in building up their technology infrastructure and the support of education programs to advance the capabilities of the local workforce,” stated Intel chairman Craig Barrett. “Intel looks forward to working with the government and public sector in Vietnam to grow their technology capabilities and competitiveness.”

Earlier media reports had indicated Intel received a license from Vietnam’s Ministry of Investment and Planning to invest twice as much (US ~$600 million) for a proposed backend assembly facility. The Associated Press quoted a government official indicating that although Intel chose to place its facility in Ho Chi Minh City, longer-term plans call for attracting other high-tech companies to the Hoa Lack high-tech park near Hanoi.

Computer and electronics exports from Vietnam rose 34% in 2005 to about $1.44 billion, vs. $1.7 billion in imports.