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Intel refutes closure rumors

Released at: 14:43, 29/09/2016

Intel refutes closure rumors

Photo: Intel

Intel cutting down on employee numbers in Vietnam but not production.

by Do Huong

A representative from Intel in Vietnam dismissed rumors about the company shutting down its Vietnam operations when contacted by VET.

Mr. Pham An Duong, Marketing Director at Intel Vietnam, said it is only restructuring its operations. Mr. Tran Duc Trung, General Director of Intel Vietnam, and some other employees will end when their contracts with the company expire on or after September 30.

Mr. Duong will leave on October 31.

Intel has two different companies in Vietnam: Intel Products and Intel Vietnam. Intel Vietnam, in charge of handling its business affairs, was established in 1997 and is located in District 1, Ho Chi Minh City. The company will have just five employees after restructuring.

At Intel Products, its chip manufacturing factory for laptops and mobile devices, the restructuring will not affect operations. Established in 2006, the factory is located at the Saigon High-Tech Park in District 9 with investment capital of $1 billion and 1,000 employees. Eighty per cent of Intel’s computer chips sold in the world are produced at the factory. From January 2014 it’s also produced system on a chip (SOC) products for tablets and smartphones.

This is part of a global restructure carried out by Intel Corporation since April, under which it will cut 12,000 employees around the world due to declines in computer sales.

The world’s largest chip maker plans to invest in mobile devices, in which ARM and Qualcom dominate the market. Sixty per cent of its revenue and profits comes from chip and micro processing. It expects to save $570 million this year and $1.4 billion by the middle of next year from reducing its head count and cutting other costs.

Intel also plans to invest more in growing business sectors such as games and the Internet of Things.  

It recorded $13.7 billion in revenue in the first quarter, up 7 per cent against the same period last year. Profit stood at $2 billion, up 3 per cent.

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