Intel Corp (NASDAQ:INTC) gave up its Vietnam ambitions as it shelved a planned investment, citing concerns about the stability of power supplies and excessive bureaucracy.
Vietnam’s electronics manufacturing hub is home to Intel’s largest factory worldwide for assembling, packaging, and testing chips.
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U.S. President Joe Biden had announced deals to support Vietnam’s chips industry during a visit in September. Intel had made that decision around July, Reuters cites familiar sources.
Intel also announced significant investments in Europe in June, when Vietnam battled power shortages, forcing many manufacturers to suspend production temporarily. Intel is also expanding its investment in chip packaging in Malaysia.
Meanwhile, Intel is the leading contender to bag billions of dollars in U.S. government funding for secure facilities producing microchips for U.S. military and intelligence applications.
The facilities could cost $3 billion – $4 billion, with U.S. subsidies coming from $39 billion under the Chips Act, the Wall Street Journal reports.
U.S. military looks to reduce dependence on chips imported from East Asia, particularly Taiwan, which is vulnerable to Chinese invasion.
Price Action: INTC shares traded higher by 0.70% at $38.21 on the last check Tuesday.
