The first ever Ho Chi Minh City-made Intel Central Processing Unit (CPU) “Haswell” was just released and the American company is planning to transfer the majority of its production here. The CPU was built in Saigon Hi-Tech Park (SHTP) in just two months. “Haswell” is the code name for the fourth generation of processing chips found in almost all desktop computers, laptops and mobile phones.
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Intel Corporation, the U.S.-owned techno giant, established its Vietnam factory in 2006. It started assembling and testing semi-conductor components in 2010. Since then, the localized company has been doing very well. In fact, Vietnamese workers are known to adapt to the company’s technology quick and successfully perform its assignment. Vietnam-made chips have low error rates and there have been no complaints or returns due to defective products. Intel Vietnam earned U.S.$1.8 billion in export last year. “Haswell” is a particularly difficult product to make which took Intel China Chengdu 15 years to make and its Malaysian branch 40 years.
For Vietnam to be able to make it in just two months seals its capacity and capability with the technological giant. Just four years after Intel established its Vietnamese plant and saw an exceptional performance, the localized branch has been assigned the big responsibility of making two of the company’s flagship products: SOC (System On a Chip) and “Haswell” CPU.
Because of Vietnam’s outstanding performance and exceptional product turnout, Intel is planning to produce 80% of its international market CPU in the country in 2015. The company has already imported 71 pieces of equipment from its Malaysian and Costa Rica factories, and deployed 105 Vietnamese engineers to Malaysia for training. It will import 159 more devices for CPU production in the future.
Aside from a positive feedback from Vietnam in terms of workmanship, another reason why Intel favors Vietnamese suppliers is that it saves the company both money and time than having to send its machinery abroad for repairs. This is why it made a big investment into the country educating and training its workers and even implementing sustainable development through solar powers and industrial waste processing.
At present, Intel Products Vietnam has over 1,000 local employees. The mother company is aiming for an 80% localization but with the guarantee of yielding standard-quality products. Since 2010 that the Vietnam branch was opened, the number of local suppliers have dramatically risen from three to 16. This positive business scenario is creating an encouraging environment in many aspects like creating jobs, improving tourism, attracting investors and developing the socio-economic development of Vietnam as a whole.