Tech giant relocates production of certain mature products from Malaysian facility to cut labor costs.
The chip-making leader Intel is relocating some of its mature products to Vietnam from its facility in Kulim in Malaysia and has begun to lay off some of its workers, according to The Star Online in Malaysia.
The Kulim facility has in recent weeks laid off about 600 workers involved in manufacturing mature products for the desktop PC market, which will now be produced at Intel’s facilities in Ho Chi Minh City, where labor cost savings can be made.
Intel Vietnam was unable to answer questions on the matter from VET.
Intel Kulim was established in 1995 as a manufacturer of motherboards. However, the growing popularity of smart mobile devices spurred growth in data centers that need to send out information and services via servers, which require high-end Intel processors.
Today, the site encompasses two buildings and is engaged in the assembly of processor packaging as well as being a key operations center for mobile modules.
Intel employs some 8,000 employees in Malaysia, of which more than 40 per cent are based in Kulim.
A number of technology corporations have already shifted production to Vietnam, such as Samsung, LG and Microsoft, due to the country’s low labor costs.