Intels Vietnam IC facility delayed

HO CHI MINH CITY, VIETNAM: Owing to unforeseen snags, Intel Corp has reportedly put on the back burner its plans for production at its IC-packaging and test plant in Vietnam's Ho Chi Minh City.

The company might delay the schedule by at least three quarters, said industry sources.

Intel had announced its IC facility in Ho Chi Minh City back in 2006 and had expected to kick off production by the end of 2009. However, the new decision could mean that the schedule might have to wait till third quarter of year 2010.

A company spokesperson said Intel has enough backend capacity, but the Vietnam facility is critical for the company's business. When completed, the Vietnam plant will supposedly be the largest single factory within the Intel assembly and test network, the company has said. Intel has said that the construction of the facility will be over by end of 2009 and production will begin in 2010.

'The snags are being attributed to the the monsoon and the issue of a contractor not matching up to the company's expectations. The company seems to have taken positive steps in tiding over such obstacles and has continued its push to get the construction done.

The Ho Chi Minh City facility is said to be the first investment of its kind by the semiconductor industry in Vietnam.

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