Exclusive: Intel weighs boosting investment in Vietnam chip packaging plant

© Reuters. FILE PHOTO: The Intel Corp logo is seen on a display in a store in Manhattan, New York City, U.S., November 24, 2021. REUTERS/Andrew Kelly/File Photo

HANOI (Reuters) – Intel Corp (NASDAQ:) is considering a significant increase in its existing $1.5-billion investment in Vietnam to expand its chip testing and packaging plant in the Southeast Asian nation, two sources familiar with the matter told Reuters.

The possible move, which one source said could be worth about $1 billion, would signal a growing role for Vietnam in the global supply chain for semiconductors, as companies push to cut reliance on China and Taiwan because of political risks and trade tension with the United States.

One of the sources said the investment was likely to be made “over the future years” and could be even bigger than $1 billion, while the second person said Intel was also weighing alternative investment in Singapore and Malaysia, which may be preferred to Vietnam.

Both sources sought anonymity as the plan was not yet public.

Asked about the possible investment plan, Intel told Reuters, “Vietnam is an important part of our global manufacturing network, but we have not announced any new investments.”