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Intel Vietnam IC-assembly ramp hits snags

Posted: 18 Aug 2009 ?? ?Print Version ?Bookmark and Share

Keywords:Intel Vietnam? IC-packaging? manufacturing?

It seems that chip giant Intel Corp. has pushed out the production schedule for its IC-packaging and test plant in Vietnam by three or so quarters due to some unforeseen snags. The Ho Chi Minh City facility, announced in 2006, was supposed to begin production by the end of 2009.

Now, the $1 billion Vietnam factory is set to begin production in Q3 10, according to a spokesman for Intel in Vietnam.

For now, Intel still has enough backend capacity. But Intel's Vietnam facility is a critical piece of the company's manufacturing puzzle, especially as it consolidates its backend plants. When completed, the Vietnam plant will supposedly be the largest single factory within the Intel assembly and test network.

"We expect construction to be done by end '09 and production in '10. We've not wavered in our commitment to get the facility online," according to another spokesman for Intel in Asia-Pacific.

"The reason for the differential (in the time schedule) is relatively prosaicas with any greenfield site, there are teething issues," the spokesman said. "In Vietnam we fell foul of the monsoon first year out; then had a contractor not match up to our expectations. We've worked through all these and continue to push to get construction done."

When Intel announced the plant in 2006, the chipmaker made a big deal about the event. The facility is said to be the first investment of its kind by the semiconductor industry in Vietnam. This is believed to be the first IC-assembly plant in Vietnam. There are no fabs in that nation.

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