Intel shifts data center chip production line to Vietnam

Intel is relocating a production line for data center chips from Costa Rica to its Vietnam facility, reinforcing the Southeast Asian country’s role in the giant's global supply chain.

The move involves transferring part of Intel’s operations to Intel Products Vietnam (IPV), located in the Saigon Hi-Tech Park (SHTP), according to a report by the park’s management board submitted to the municipal People's Committee.

The report said Intel’s Vietnam plant has long played a key role in the company’s global semiconductor manufacturing network. The decision to shift production from Costa Rica underscores Vietnam’s position as a strategic priority base.

Notably, the IPV facility is the largest chip assembly and test plant in Intel’s global network. The relocation is expected not only to expand production capacity but also to upgrade Vietnam’s technological capabilities, as Intel introduces manufacturing of server chips used in data centers and next-generation networking, according to the report.

Especially, advanced packaging technology EMIB (Embedded Multi-die Interconnect Bridge) has been transferred to the Vietnam plant.

After 20 years of operations in Vietnam, Intel’s facility at the Saigon Hi-Tech Park has produced more than 3 billion units cumulatively between 2010 and 2021. The plant spans 46.6 hectares, with total committed investment of nearly $4.12 billion, accounting for nearly 30% of total registered investment in the park.

Intel Products Vietnam has become a key contributor to exports. Shipments reached $10.31 billion in 2023, $11.41 billion in 2024, and $11.67 billion in 2025, and are projected to hit a record $14.6 billion in 2026, up 25% year-on-year.

Data center demand set to surge

A 2026 Asia-Pacific data center construction cost guide published by Cushman & Wakefield estimates average construction costs in Ho Chi Minh City and Hanoi at around $7.2 million per megawatt (MW).

Vietnam’s total operational data center capacity is currently about 104 MW and is projected to increase five- to six-fold to nearly 600 MW by 2030. Meanwhile, the cloud computing market is growing at around 30% annually, about 1.5 times the global average.

The market remains highly concentrated, with five major players accounting for 97% of total capacity, including Viettel IDC (about 41%), VNPT (24%), alongside CMC, FPT Telecom, and VNG Corporation.

This concentration highlights strong growth potential but also underscores high barriers to entry, including significant capital requirements, stable power and telecom infrastructure, and complex operational capabilities.

According to consultancy CBRE, data center construction costs in Vietnam average about $7 million per MW, among the lowest in Asia, helping attract international investment. However, low costs alone do not guarantee returns if key fundamentals - particularly power supply, planning and infrastructure connectivity - fail to keep pace.