US chipmaker Intel plans to expand its semiconductor operations in Vietnam as part of a global restructuring aimed at strengthening its supply chain, according to the corporation’s local unit.

The move could see part of its assembly, packaging and testing work shifted from Costa Rica to the Southeast Asian country, which is becoming increasingly central to the corporation’s long-term strategy.

The plan, says Kenneth Tse, Intel’s Vietnam country manager of Intel, is driven by a desire to optimize operational efficiency and enhance Intel’s global manufacturing footprint. He discussed the proposal during a recent meeting with Nguyen Van Duoc, chairman of the Ho Chi Minh City People’s Committee, at the Saigon Hi-Tech Park, where Intel’s local facility operates.

During the meeting, the city mayor noted that the megacity would continue to give full support to Intel’s operations and resolve any administrative hurdles the company faces. He also expressed a desire to see the Intel Products Vietnam ( IPV ) facility, known as IPV, become a centre of excellence for advanced chip packaging and testing, producing some of Intel’s most complex and high-value products.

The discussions followed a meeting in New York earlier this month between city officials and Sarah Kemp, Intel’s vice-president for international government affairs, to explore cooperation in technology investment and workforce training.

Intel’s IPV facility in Ho Chi Minh City is the company’s largest assembly and test site globally. The plant spans an area equivalent to almost six international football fields, employs more than 6,000 people and produces over half of Intel’s total output, underscoring its strategic importance.

Since operations began in 2010, IPV has shipped more than 4 billion units. Cumulative exports, as of the second quarter of 2025, according to Intel Vietnam, exceeded US$100 billion. The facility, Tse points out, is preparing to take on new technology through a planned transfer that will enable it to manufacture Intel’s next-generation 18A chips, including high-value server processors.

Intel Vietnam, Tse adds, will rely on continued facilitation from local authorities for the import and export of advanced equipment needed for the upgrade. Intel also plans to work with Ho Chi Minh City on training programmes for artificial intelligence talent and renewable energy initiatives, in line with the city’s development goals.

Intel received its investment license in Vietnam in 2006 and has invested US$1.5 billion in the country so far. The Ho Chi Minh City plant was Intel’s first major semiconductor project in Vietnam and has helped pave the way for other global chipmakers to consider the country as a manufacturing base.

Intel’s expansion comes as Ho Chi Minh City experiences renewed investor confidence. In the first nine months of 2025, the southern economic hub, which incorporates the two provinces of Binh Duong and Ba Ria-Vung Tau, attracted US$7.13 billion in registered foreign direct investment ( FDI ), according to the municipal’s department of finance, up 37.4% from a year earlier.

About 65% of the pledged capital, equivalent to US$4.63 billion, has been disbursed. Much of the inflow has gone into export processing zones, industrial parks and high-tech sectors, with several foreign investors committing to semiconductor-related projects.

The rebound follows a weaker 2024, when FDI inflows into Ho Chi Minh City,  according to the city’s data, fell to about US$2.3 billion. The 2025 surge, analysts say, signals growing confidence in Vietnam’s long-term potential as a destination for high-value, technology-driven investment.