Intel invests $1bn in Vietnamese plant

plans to increase the size of the assembly and test facility it is building in

from 150,000 square feet to 500,000 square feet.

Intel decided to increase the size of the facility after an internal study determined that 500,000 square feet was the most efficient size for assembly and test facilities. Consequently, the company is raising its investment from $300m to $1bn.

The new Vietnam facility will be the largest single factory within the Intel assembly and test network. With the additional capacity plans, construction is now expected to begin in March. Production will begin in 2009 and could eventually employ as many as 4,000 people.

The Vietnam facility is part of Intel’s worldwide expansion of production capacity. By the end of this year, the company plans to invest nearly $6bn worldwide for capital additions.

When completed, the Vietnam facility will be the seventh assembly and test site in Intel’s global network. Other sites include Penang and Kulim, Malaysia; Cavite, Philippines; Chengdu and Shanghai, China; and San Jose, Costa Rica.