Intel urged to expand chip packaging, testing operations in Vietnam

Vietnam has urged Intel to step up investment in semiconductor packaging and testing operations in the country, as Hanoi accelerates efforts to build a domestic chip ecosystem aligned with global supply chains.

During a visit last Wednesday to Intel Products Vietnam's (IPV) assembly and test facility in Ho Chi Minh City, Deputy Minister of Science and Technology Bui Hoang Phuong said Vietnam wants to deepen cooperation with the U.S. and major technology corporations, particularly Intel, under the country's semiconductor development strategy.

Phuong urged Intel to expand assembly, testing, and packaging (ATP) activities in Vietnam while playing a larger role in implementing the country’s semiconductor roadmap. This includes workforce training, development of specialized laboratories and testing infrastructure, research and development of semiconductor products, and support for start-ups and local chip design centers.

He also called on Intel to accelerate microchip technology transfer to Vietnam, share experience in building high-value semiconductor ecosystems, and cooperate with Vietnamese ministries and agencies in rolling out tech-related strategic initiatives.

Vietnam also expects Intel to consider expanding its R&D footprint and partnering with local institutions to establish labs focused on chip design, simulation and testing, particularly for application-specific chips serving digital transformation, the Vietnamese official stressed.

Phuong encouraged Intel to participate in training programs for chip design engineers, internships and scholarship schemes, and deeper cooperation with universities and research institutes.

Kenneth Tse, general manager of Intel Products Vietnam, lauded Vietnam’s proactive policies in the semiconductor sector. He said Intel would continue to accompany Vietnam in implementing its semiconductor strategy, including ecosystem development, high-quality workforce training, and the development of specialized chips for digital applications.

Intel Products Vietnam operates Intel’s largest assembly and testing facility globally, accounting for more than half of its global output and employing over 6,000 workers.

In an October meeting with Chairman of the HCMC People’s Committee Nguyen Van Duoc, Tse said that Intel plans to shift its assembly, packaging, and testing operations from its Costa Rica facility to potential markets such as Vietnam. This is part of Intel’s ongoing global strategic transition and adjustments to optimize its manufacturing operations, thus enhancing its efficiency and competitiveness, he added.

After nearly 20 years of operation in Vietnam, IPV had exported more than 4 billion units, contributing over $100 billion to Vietnam’s export turnover as of Q2/2025.