Intel has called off its planned investment expansion in Vietnam, which would have doubled the tech giant’s operations in the country, Reuters reported.
Intel made the decision in July, prior to the visit of U.S. President Joe Biden to Vietnam, Reuters added.
“Vietnam will continue to be a critical part of our global manufacturing operations as demand for semiconductors grows,” Intel said to Reuters.
The Investor raised questions with Intel Vietnam's representative early on Wednesday morning about the article. In reply, the representative said that Intel would not comment on the issue.
The Vietnam-U.S. comprehensive strategic partnership will generate more FDI opportunities for Vietnam’s semiconductor industry, especially in Ho Chi Minh City, Intel Products Vietnam general director Kim Huat Ooi told The Investor during an interview in September.
"Vietnam’s stable socio-political environment, increasingly liberalized trade and investment policies, as well as the availability of a young and talented workforce have made it easier for Intel to continue investing in Vietnam," the CEO noted.
In 2021, Intel announced its latest investment in Vietnam of $475 million, raising its total investment in Vietnam to $1.5 billion.
Intel is recruiting 13 positions in Vietnam, according to its recruitment page. Notably, the recruitment features director of government affairs and external relations manager.
In the director government affairs job, the candidate will be responsible for working closely with Intel Vietnam, the director of Southeast Asia government affairs, and the vice president of international government affairs to develop a comprehensive government relations strategy for ensuring a supportive semiconductor policy and regulatory environment for Intel's growth and operations.
The position will also be responsible for maintaining excellent relationships and networks with key government stakeholders at the federal, provincial, and local level to positively position Intel and build a sound reputation and position of influence for the company.
Intel spent net cash of $18.72 billion on investing globally during the first nine months of this year, according to the firm’s quarterly financial results. The chipmaker spent $19.05 billion on additions to property, plant, and equipment; $37.29 billion on purchases of short-term investments; and obtained $36.73 billion on maturities and sales of short-term investments.
The $18.72 billion nearly tripled the $6.99 billion posted in the same period of 2022.
Since 2021, Intel has announced global investments of billions of USD. They include $7 billion in Malaysia, $4.6 billion in Poland, and €17 billion ($18.18 billion) in Germany. In the U.S., its investments have included $3.5 billion in New Mexico, $20 billion in Arizona, $20 billion in Ohio, and an under-planning investment in Oregon.
Intel has submitted all four of its major manufacturing proposals in Arizona, New Mexico, Ohio and Oregon, representing more than $100 billion in manufacturing and research investments, to the U.S. Department of Commerce’s CHIPS Program Office, Intel said in its Q3 review.
Intel also emphasized its goal of “continuing its investment in manufacturing capacity to create a geographically balanced, secure and resilient supply chain.” In particular, in Q3/2023, Intel opened Fab 34 in Leixlip, Ireland. Combined with the company’s planned wafer fabrication facility in Magdeburg, Germany, and planned assembly and test facility in Wrocław, Poland, this will help create a first-of-its-kind, end-to-end leading-edge semiconductor manufacturing value chain in Europe.