Intel is moving its assembly and packaging operations from Costa Rica to Vietnam.

Intel will transfer assembly, packaging, and testing from its Costa Rica facility to its Ho Chi Minh City plant; and will continue recruiting until the end of 2025. This facility currently accounts for more than 50% of the group's total production.

Intel plans to move its assembly, packaging, and testing operations from its Costa Rica plant to Vietnam, according to Kenneth Tse, General Manager of Intel Products Vietnam (IPV), during a meeting with Ho Chi Minh City leaders on October 24th at the Ho Chi Minh City High-Tech Park (SHTP). This move is part of a global strategic shift aimed at optimizing production, improving efficiency, and enhancing competitiveness.

Main developments

IPV stated that the corporation is implementing production adjustments and hopes that Ho Chi Minh City will support the procedures for obtaining operating permits for the machinery, as well as ensuring air cargo security for the import of the production line to the Saigon Hi-Tech Park (SHTP). At the same time, Intel began announcing recruitment of additional personnel in Vietnam until the end of 2025, mainly production technicians, to prepare resources for expansion. The number of additional recruits and the start date of operation of the new production line have not yet been announced.

Intel's factory in Ho Chi Minh City's High-Tech Park. Photo: IPV

Current capacity of the Vietnamese factory

• The IPV plant is Intel's largest assembly and testing facility, accounting for over 50% of its production.
• Created over 6,000 jobs.
• Applying new technologies, including the 18A chip product line.
• After 20 years of operation, the company has exported over 4 billion products.
• Contributing over $100 billion to Vietnam's export turnover by the second quarter of 2025.

Causes and context

According to Kenneth Tse, Intel is undergoing a global strategic transformation, adjusting to optimize its manufacturing operations. The shift of operations from Costa Rica to Vietnam aligns with the company's focus on improving efficiency and competitiveness. At the local level, the company requested support from Ho Chi Minh City regarding permits for machinery and equipment, and air transport security, to ensure the timely import of the production line.

Timeline and related activities

• October 16th: At the Ho Chi Minh City - US Fall Forum 2025 in San Francisco, Intel signed a memorandum of understanding to sponsor machinery and equipment for semiconductor training with SHTP.
• Early October: Intel announced it will be recruiting additional staff in Vietnam until the end of 2025.
• October 24th: IPV leaders met with Ho Chi Minh City leaders at SHTP, outlining plans to relocate operations from Costa Rica to Vietnam.

Short- and medium-term outlook

In the short term, procedural steps such as operating licenses, air cargo security requirements, and equipment import schedules will determine the speed of deployment. The recruitment drive extending until the end of 2025 indicates that the capacity expansion plan is being prepared comprehensively in terms of personnel. In the medium term, once the new production line is operational, the Vietnamese facility will be in a position to handle more complex products, aligning with Intel's Industry 18A technology direction.

Local impact and commitment

At the meeting on October 24th, Ho Chi Minh City leaders expressed their expectation that IPV would become a center of excellence in packaging and testing – a place to perfect Intel's complex, high-value products – and committed to supporting and creating favorable conditions for the business to operate, thereby contributing to the goal of sustainable development, the digital economy – high technology, and enhancing Vietnam's position.

Points to watch

• Progress in importing production lines and completing operational procedures at SHTP.
• The roadmap for operating the new production line and the actual recruitment scale up to the end of 2025.
• The level of participation of Vietnamese factories in high-tech product lines, including 18A.

Conclude

The plan to move operations from Costa Rica to Vietnam, along with expanded recruitment and training support agreements, strengthens the role of Intel's Ho Chi Minh City plant in the group's assembly and testing chain. Intel has not yet announced the specific impact on production volume and the timing of the new line's operation.

Source: https://baolamdong.vn/intel-chuyen-lap-rap-dong-goi-tu-costa-rica-sang-viet-nam-397631.html