Overview

• Intel has shelved its planned further expansion in Vietnam that could have almost doubled its operations in the country, affecting Vietnam's aspirations to expand its role in the global semiconductor industry.
• The cancellation of the expansion comes after US officials privately informed a select group of US businessmen and experts of Intel's decision, which was supposedly finalized around July, despite President Biden's supportive visit in September.
• Intel has not publicly stated why the expansion was called off, but sources linked to the matter revealed that Intel raised concerns about the stability of power supplies and bureaucratic challenges in Vietnam.
• Intel's decision comes on the heels of it announcing major investments in Europe and Malaysia earlier in the year, as well as Vietnam grappling with power shortages that caused many manufacturers to temporarily halt production in June.
• Vietnam had hopes to attract an additional $3.3 billion investment from Intel, but it pulled references to these plans following the media reporting on them. Intel and other multinationals are pressing the Vietnamese government to offer financial incentives as it mulls over introducing a new levy on large companies as part of a global tax reform.