Intel calls for local help in growth race

June 27, 2011 | 09:00
(0) user say
Intel is on the hunt for local suppliers as it chases long-term growth for its chipset operations in Vietnam.
Supporting industries will be key to Vietnam’s success over the next five years

“There is large, long-term potential for suppliers working with Intel because we are ratcheting up our production here in Vietnam,” said Nguyen Hoai Huong, purchasing manager of Intel Products Vietnam Company Limited.

“We want to work with locally-owned firms that understand the culture, market, laws and regulations,” added Ngo Chi Dung, the company’s local sourcing manager.

Intel’s Vietnam plant currently had just one production line and only produced its first-generation Ibex Peak chipset , said Huong. By year’s end there would be three new lines and the firm would be producing its second generation Cougar Point chipset with a total capacity of 4.4 billion units per quarter, Huong added.

To hit these targets , the company is now chasing suppliers for metal works  and high precision hardware such as hand tools as well as consumables and off-the-shelf spare.

In the longer term, Intel hopes to install more than four lines per year at its huge assembly test facility in Ho Chi Minh City. In 2012 they aim to kick off production of the third generation Panther Point chipset, currently only manufactured in China. The plant will produce Lynx Point in 2013.

Intel is planning on 52 lines by the end of 2015 and could employ as many as 4,000 people when the plant is fully completed.

“The $1 billion plant is designed to be able to produce central processing units (CPUs) within the next 2–3 years,” said Huong, adding the revenue was expected to reach $20 billion in 2015.

According to Dung, Intel will need locally-owned enterprises to provide input materials and supporting products for the operation and production of the plant.

Intel currently has 55 qualified suppliers, most of whom are wholly foreign owned enterprises and joint stock companies.

By Minh Thien

vir.com.vn

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional

TagTag: