Intel Corporation has officially affirmed its commitment to proceed with the expansion of its investment in Vietnam.

This strategic move is geared towards enhancing Intel’s existing $1.5 billion factory situated in the Southeast Asian electronics manufacturing hub.

Addressing the Vietnam-US Trade Forum on Tuesday, Ace Wilson, Chief Financial Officer of Intel Vietnam, highlighted that Vietnam remains a crucial component of its global manufacturing operations, particularly as the demand for semiconductors continues to rise.

The company aims to diversify its factory strategy across multiple countries, with a set target of achieving $10-11 billion in export turnover for the current year. Wilson mentioned that approximately 70% of chip production supporting the region is anticipated to originate from the Vietnamese factory.

In June, Intel made the decision to invest in a production plant in Germany, committing approximately $33 billion in total investment capital. This move is part of Intel’s broader efforts to expand semiconductor production in Europe.

Daniel Nguyen, Vice Chairman of the Economic Development and Small Business Committee and Member of the Semiconductor Committee of the Oregon House of Representatives, expressed optimism about Vietnam’s potential for semiconductor industry development. He noted that the US has allocated $240 million to support the semiconductor industry, with a specific focus on assisting US businesses investing in this field in Vietnam.

Vietnam currently hosts Intel’s largest factory globally for assembling, packaging, and testing chips. The Southeast Asian nation has been anticipating Intel’s increased investment, particularly following deals announced by the US President to support its chips industry during a visit in September.