10 years for Saigon Fabrication to become Intel's supply chain partner: exec

Saigon Fabrication Ltd., specializing in providing electronic equipment to international businesses like Analog Devices, spent nearly 10 years working toward becoming a motherboard supplier for Intel, said its CEO Tran Viet.

Viet disclosed the information on the sidelines of a strategic components supplier conference aimed at developing the semiconductor and high-tech supply chain in Vietnam.

The conference, organized by Intel Products Vietnam and the Saigon High-Tech Park (SHTP) in Ho Chi Minh City on Tuesday, attracted over 40 leading domestic and international semiconductor component suppliers, along with many other industry manufacturers.

Viet said that his company has only been supplying motherboards to Intel for the past two years. "Becoming a supplier for Intel was a long and challenging process because, in the past, Intel typically worked with suppliers it had longstanding relationships with abroad."

To become a supplier, businesses must meet Intel's extremely high standards in areas like human resources, machinery, and materials.

"We began approaching Intel many years ago, and it took us 10 years to meet their standards and become a supplier. In the beginning, when our factory didn’t meet the required standards, Intel helped us upgrade it to meet their specifications," he recalled.

Currently, revenue from supplying products to Intel makes up about 30% of Saigon Fabrication’s total revenue, with expectations to grow that share to 50% next year.

“We’re planning to increase our capacity, expand our factories, and hire more staff to meet Intel’s growing needs,” he added.

Saigon Fabrication currently employs 400 people, with 150 dedicated to serving Intel. The company provides Intel in two key areas: supplying motherboards and providing machine repair services.

At the event, Naga Chandrasekaran, Intel's chief technology and operations officer, noted that Intel Vietnam is on track to reach the milestone of shipping four billion products this April, a significant achievement that underscores the importance of Intel's assembly and test factory in Vietnam within the company’s global operations.

Since Intel Vietnam was established in 2006, the company has built a local supply network and now works with 600 partners.

"Through this conference, we aim to create a platform to open new opportunities for suppliers, support workforce development, and foster innovation to strengthen Vietnam’s semiconductor ecosystem," Naga said.

On the local side, Nguyen Ky Phung, head of the management board of Saigon High-Tech Park (SHTP), emphasized that SHTP is committed to creating an attractive investment environment and providing full support for Intel in building its supply chain, ultimately contributing to the growth of Vietnam's semiconductor industry.

He encouraged Intel Products Vietnam to continue developing support programs, training high-quality talent, and successfully establishing a network to connect businesses within the supply chain.